Locust software sells computer training packages to its

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Locust Software sells computer training packages to its business customers at a price of $105. The cost of production in present value terms is $99. Locust sells its packages on terms of net 30 and estimates that about 8% of all orders will be uncollectible. An order comes in for 20 units. The interest rate is 5% per month. A-1: Calculate the profit or loss if the sale will not be made unless credit is extended. $ __input the amount as a postive value. Do not round intermediate calculations B-1: Calculate the present value of the sale $__do not round intermediate calculations, round your answer to 2 decimal places. C-1: What is the break-even probalility of collection in the repeat-sales case?

Reference no: EM13483244

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