(Solution) - Happy Times currently has an all cash credit policy It is -(2025 Original AI-Free Solution)

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Happy Times currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. Based on the following information, what do you recommend? The required return is .95 percent per month.
Current Policy New Policy
Price per unit.........................$290.....................$295
Cost per unit........................$230........................234
Unit sales per month..............1,105........................1,125