The monthly interest rate is 2 percent and the variable, Finance Basics

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The monthly interest rate is 2 percent and the variable

Cape May Products currently sells 80 units a month at a price of $238 a unit. The firm believes it can increase its sales by an additional 38 units if it switches to a net 30 credit policy. The monthly interest rate is .2 percent and the variable cost per unit is $168. What is the incremental cash inflow from the proposed credit policy switch?

$3,192
$4,480
$2,660
$5,600
$8,260

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