1. Fresno, Inc. has monthly sales of 280 units with a sales price of $38 per unit and a variable cost per unit of $16. Currently, the firm has a cash only policy. Jim, the firm’s financial manager, estimates the firm can sell an additional 25 units per month if the firm would switch to a net 30 credit policy. The monthly interest rate is .3 percent. What is the net present value of the switch if you ignore taxes?
$200,333
$172,293
$194,373
$164,033
2. Common costs : A) are fixed costs that are not directly traceable to an individual product line B) normally not avoidable both A and B are true statements Neither A nor B is a true statement