A firm is analyzing a relaxation of credit standards that is expected to increase sales 10 percent. The firm is currently selling 400 units at an average sale price per unit of $575, and the variable cost per unit is $400 at the current sales volume
The average cost per unit is $425. What is the additional profit contribution from sales if credit standards are relaxed?
A) $23,000
B) $16,000
C) $6,000
D) $7,000
D
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Fill in the blank(s) with correct word
Acknowledging you made a mistake is an example of negative assertion
Indicate whether the statement is true or false.
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a. Product design costs b. Factory rent costs c. Direct material costs d. Setup costs
Co-specialization requires which of the following?
a. Management of assets and their development in relation to each other in alliances and collaborations b. Relating strategy to past traditions c. Organizations with a long history in the market d. Organizations operating in dynamic environments