Math A company decided to implement a credit program for the first time. Before offering credit to

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Math A company decided to implement a credit program for the first time. Before offering credit to customers, sales were $87,000 per month. With the new program, sales increased 25 percent. The monthly cost of managing the program is $13,000. The company is unable to collect 2 percent of total monthly sales due to poor customer credit. Using the figures provided, calculate (1) the dollar increase in monthly sales, (2) total monthly sales, (3) the total cost of the credit program, and (4) the monthly profit or loss resulting from implementing the credit program.

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Business Finance

ISBN: 9780357532348

1st Edition

Authors: Les Dlabay, James L. Burrow

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