Sawyer’s currently sells 70 units per month at a price of $4…
Sawyer’s currently sells 70 units per month at a price of $412.50 per unit. The firm is considering switching to a 30 day credit policy with a credit sales price of $429.69 per unit and a cash price of $412.50. The monthly interest rate is 1.17 percent. What is the break-even default rate of the proposed switch?