c. HUW Imaly Uluers SIIuulu De placed eacI ycur ! d. What is the total inventory cost? e. What is the reorder point? Problem 7 Dama de Noche Corporation is considering a change in credit policy. The...

Extracted text: c. HUW Imaly Uluers SIIuulu De placed eacI ycur ! d. What is the total inventory cost? e. What is the reorder point? Problem 7 Dama de Noche Corporation is considering a change in credit policy. The current policy is cash only, and sales per period are 2,000 unit: at a price of P110. If credit is offered, the new price will be P120 per unit, and the credit will be extended for one period. Unit sales are not expected to change, and all customers are expected to take credit. Dama de Noche anticipates that 4 percent of its customers will default. If the required return is 2- percent per period, is the change a good idea? What if only half the customers take the offered credit? Problem 8