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2- XYZ company is thinking on improving their solvency. Therefore they need to collect faster. However, they don't want to lose customers, so they are
2- XYZ company is thinking on improving their solvency. Therefore they need to collect faster. However, they don't want to lose customers, so they are analyzing the possibility of motivating their clients to pay earlier. They have decided to give a 3/10 net 30 condition and they expect to increase their sales drom 15.000 to 19.000 units. Considering that they have a unit price of 20$ and a variable cost of 14$, they expect to decrease as well the ACP from 40 days to 25 days and a 70% of their clients to take profit of the prompt payment discount. There's no bad change. Consider a cost opportunity of 16% and calculate the following. 1- The benefits (in detail) 2- The cost (in details) 3- The net result 4- Your descision Note: do and write the whole exercise to prove your numbers and descisions
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