Supplies turbines for hydro and wind power generation

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Reference no: EM131360944

Northland is a company that supplies turbines for hydro and wind power generation. A new customer has placed an order for 10 large capacity wind turbines which will increase the efficiency of their wind mills. The variable cost per unit is $13,000 and the sales price per unit is $15,000. Credit is extended for one period. Based on historical experience payment for about 1 out of 100 is never collected. The required return is 1.8% per period. Should the order be filled if this is a one time customer? What if it is a repeat customer?

Reference no: EM131360944

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Supplies turbines for hydro and wind power generation : Northland is a company that supplies turbines for hydro and wind power generation. A new customer has placed an order for 10 large capacity wind turbines which will increase the efficiency of their wind mills. The variable cost per unit is $13,000 an..

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