The big C is considering a change in its cash-only sales policy. The new terms of sale would be one month. The required return is 1.6 percent per month. Based on the following information, what is the cost of switching to the new policy? Current policy New policy 800 800 425 1,150 Price per unit (RM) Cost per unit (RM) Unit sales per month 425 1,110
The big C is considering a change in its cash-only sales policy. The new terms of sale would be one month. The required return is 1.6 percent per month. Based on the following information, what is the cost of switching to the new policy? Current policy New policy 800 800 425 1,150 Price per unit (RM) Cost per unit (RM) Unit sales per month 425 1,110
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 11PROB
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Transcribed Image Text:Question 27
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The big C is considering a change in its cash-only sales policy. The new terms of sale would be one month. The required return is 1.6 percent per month.
Based on the following information, what is the cost of switching to the new policy?
Current policy New policy
Price per unit (RM)
Cost per unit (RM)
Unit sales per month
Select one:
A.
RM615,000
B.
RM845,000
OC
RM735,500
Not yet answered Marked out of 1.00
OD.
RM905,000
800
425
1,110
800
425
1,150
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