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2.2 Study the information given below and motivate with the relevant calculations whether Crypton Stores should allow the credit sales to new customers if a

2.2 Study the information given below and motivate with the relevant calculations whether Crypton Stores should allow the credit sales to new customers if a return on sales of at least 12% is required. (5 marks) INFORMATION Suppose Crypton Stores received applications from a group of customers in a new market that will increase credit sales by R65 000 but the customers are considered to be high-risk, and bad debts of 12% of the sales expected. The goods that would be sold to them have been marked at cost plus 60%. The collection costs on the new sales are expected to be 10%. The tax rate is 28%

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