Tennindo, Inc. is starting up its? new, cost-efficient gaming system? console, the yuu. Tennindo currently has...

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Tennindo, Inc. is starting up its? new, cost-efficient gamingsystem? console, the yuu. Tennindo currently has 5, 000?cash-paying customers and makes a profit of ?$40 per unit.Tennindo wants to expand its customer base by allowing customers tobuy on credit. It estimates that credit sales will bring in anadditional 1,400 customers per? year, but that there will also be adefault rate on credit sales of 5?%. It costs ?$230 to make a? yuu,which retails for ?$270. If all customers? (old and? new) buy on?credit, what is the cost of bad debt without credit? screening?What is the most Tennindo would pay for credit screening thataccurately identifies? bad-debt customers prior to the? sale? Whatare the increased profits from adding credit sales for customerswith and without credit? screening? Should Tennindo offer creditsales if credit screening costs ?$10 per? customer?
If all customers? (old and? new) buy on? credit, what is thecost of bad debt without credit? screening?

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Tennindo, Inc. is starting up its? new, cost-efficient gamingsystem? console, the yuu. Tennindo currently has 5, 000?cash-paying customers and makes a profit of ?$40 per unit.Tennindo wants to expand its customer base by allowing customers tobuy on credit. It estimates that credit sales will bring in anadditional 1,400 customers per? year, but that there will also be adefault rate on credit sales of 5?%. It costs ?$230 to make a? yuu,which retails for ?$270. If all customers? (old and? new) buy on?credit, what is the cost of bad debt without credit? screening?What is the most Tennindo would pay for credit screening thataccurately identifies? bad-debt customers prior to the? sale? Whatare the increased profits from adding credit sales for customerswith and without credit? screening? Should Tennindo offer creditsales if credit screening costs ?$10 per? customer?If all customers? (old and? new) buy on? credit, what is thecost of bad debt without credit? screening?