Refer to the data in the comprehensive illustration. What should be the level of sales to justify
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Refer to the data in the comprehensive illustration. What should be the level of sales to justify a switch to the new credit policy? At what cost of capital can the company switch to the new policy? Hold other variables constant. Come up with a new policy for the company assuming that the increase in sales will be the same as that under the new policy given in the question. Conduct an analysis of sensitivity of profits to changes in underlying policy variables.
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