2.Henry and Judy did not agree to have an open account with Jackson Foods.

a) What would be the disadvantages of So Maple having an open account with Jackson

Foods? (1.5 Marks)

b) If Henry and Judy agreed to an open account, what steps could they take to ensure their

profit margin is still achieved? (1 Mark)

3) Henry and Judy agreed for Jackson Foods to make a down payment on its order before they shipped it. What recommendations would you give to Henry and Judy about determining the selling price and payment options for Jackson Foods as a new international customer?

(2.5 Marks)

4) a) Based on the new exchange rate, what would be the new Canadian equivalent that So Maple would be receiving for the outstanding balance? (1.5 Marks)

b) What suggestions do you have to help So Maple protect its profit margin against foreign exchange risk?