Answer Happy

A seller is considering extending trade credit to an existingcustomer that buys on cash terms. The customer has just placed asales order (cash terms) for immediate delivery of 400 units at asales price per unit of $100. The customer states that they willincrease their sales order by 10 units if they receive a 90-daycredit period. Variable costs are $65 per unit and involve animmediate cash outflow. The seller has an annual opportunity costrate of 7.3%. At what sales quantity will the seller break-even(from an NPV perspective) by extending credit to the customer?
Select one:
a. 21 units
b. 400 units
c. 421 units
d. 450