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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
 Microbiotics currently sells all of its frozen dinners cash on delivery but be- lieves it can increase sales by offering supermarkets 1 month of free credit. The price per carton is $50 and the cost per carton is $40.
a. If unit sales will increase from 1,000 cartons to 1,060 per month, should the firm offer the credit? The interest rate is 1 percent per month, and all customers will pay their bills.
b. What if the interest rate is 1.5 percent per month?
c. What if the interest rate is 1.5 percent per month, but the firm can offer the credit only as a special deal to new customers, while old customers will continue to pay cash on de- livery?
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