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Incremental cash inflow of proposed credit policy switch

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Reference no: EM132761538

Question: Currently, your firm sells 600 units a month at a price of $100 a unit. You think you can increase your sales by an additional 400 units if you switch to a net 30 credit policy. The monthly interest rate is 0.7% and your variable cost per unit is $72. What is the incremental cash inflow of the proposed credit policy switch? (Do not use the $ sign. If your answer is $1,234.56, enter 1234.56)

Reference no: EM132761538

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