Problem 28-17 Break-Even Quantity
The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.0 percent per period.
Current Policy New Policy Price per unit $ 74 $ 76 Cost per unit $ 38 $ 38 Unit sales per month 3,200 ?
What is the break-even quantity for the new credit policy? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Problem 28-17 Break-Even Quantity
| The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.0 percent per period. |
| Current Policy | New Policy | |||||
| Price per unit | $ | 74 | $ | 76 | ||
| Cost per unit | $ | 38 | $ | 38 | ||
| Unit sales per month | 3,200 | ? | ||||
| What is the break-even quantity for the new credit policy? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Related questions
| Happy Times currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. Based on the following information, what is the break-even price per unit under the new credit policy? The required return is 0.88 percent per month. (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)) |
| Current Policy | New Policy | |||||
| Price per unit | $ | 235 | ? | |||
| Cost per unit | $ | 173 | $ | 178 | ||
| Unit sales per month | 1,680 | 1,735 | ||||
| Break-even price | $ |
PLEASE ONLY POST AN ANSWER IF YOU KNOW HOW TO DO THE PROBLEM. 7077.20 IS INCORRECT.
Problem 20-14 Credit Policy Evaluation [LO2]
| The Snedecker Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 1.4 percent per period. |
| Current Policy | New Policy | |||||
| Price per unit | $ | 56 | $ | 58 | ||
| Cost per unit | $ | 32 | $ | 32 | ||
| Unit sales per month | 2,300 | 2,425 | ||||
| Calculate the NPV of the decision to change credit policies. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
