What is the switch break-even point if the firm switched to


Preston Milled products currently sells a product with a variable cost per unit of $20.75 and a unit selling price of $38.75. At the present time, the firm only sells on a cash basis with monthly sales of 290 units. The monthly interest rate is 1.2 percent. What is the switch break-even point if the firm switched to a net 30 credit policy? Assume the selling price per unit and the variable costs per unit remain constant.

304 units

301 units

300 units

302 units

298 units

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Financial Management: What is the switch break-even point if the firm switched to
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