What is the break-even default rate for this one time sale

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Reference no: EM131537811

You are considering extending credit to a new customer, your decision to grant one months credit is a one-time decision. the customer will order 500 units of your product for this month. the product you want to sell has a variable cost of $4.82 and a sales price of $7.99. the monthly interest rate is 1.35%. What is the break-even default rate for this one time sale? What is the break-even rate if this customer becomes a repeat client?

Reference no: EM131537811

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