6 $ 0 151} El https:/ewconnecl.mheducation.corn/flow/connect.html if {E L la a G Ch07 Homework 0 Saved Help Save& Exit Submit answers to the nearest whole dollar. Negative answers and the values to be deducted should be indicated by a minus sign. Enter A answers in whole dollar, not in million. Do not round intermediate calculation.) A Sales 30_1 Present policy $ 3700000 Din S . p New policy 3400000 0 . A Contribution margin A Discount expense :I :I an Present policy 5 :I References New policy 1* :I I: A Bad debt expense Present policy $ New policy $ :| |:| A Marketing expense Present policy $ New policy V Mc Graw Hill Educelinn 0 Type here to search @ Homepage - FINA21 Ch07 Homework X C Problem 7-22 Comis C OB1 Sabres Ltd. Has G 4.37 million in numb G screenshot windows + V X O https:/ewconnect.mheducation.com/flow/connect.html G . . . Ch07 Homework i Saved Help Save & Exit Submit Check my work 4 A Marketing expense Present policy 69 New policy 30 $ points A Administrative expense (related to credit department) 01:23:06 Present policy New policy to tA Print A Investment in accounts receivable - References Present policy to New policy 85% of the customers 15% of the customers $ A Opportunity benefit on investment in A/R $ A Investment in inventory Present policy $ New policy Mc Graw Hill Education O Type here to search B. e M ENG 10:35 PM 11/27/2019@ Homepage - FINA21 Ch07 Homework X C Problem 7-22 Comis C OB1 Sabres Ltd. Has G 4.37 million in numb G screenshot windows + V X O https:/ewconnect.mheducation.com/flow/connect.html G . . . Ch07 Homework i Saved Help Save & Exit Submit Check my work 4 New policy A Investment in accounts receivable 30 Present policy points New policy 85% of the customers 01:22:32 15% of the customers Print A Opportunity benefit on investment in A/R $ A Investment in inventory References Present policy tA New policy $ A Opportunity benefit on inv. investment Total incremental change $ Mc Graw Hill Education O Type here to search B. e M ENG 10:36 PM 11/27/20196 9 0 GD El Vhttps:/ewconnecl.mheducation.corn/flow/connect.html I if {5 L IQ G Ch07 Homework 0 Saved Help Save 8. Exit Submit 4 w Problem 7-32 031 Sabres Ltd. has determined that product sales are not what they could be because they have unused capacity. As a result, the company is considering adjusting its marketing strategy. At present, all sales to distributors are on a cash basis, but the competition offers credit terms. Similar credit terms for 081 Sabres have been suggested. Research suggests that sales in the upcoming year wouldjump from $4.37 million annually to $5.64 million with credit terms of1/10, net 30. Furthermore, research estimates that 85 percent of the customers would take the discount and the remainder would pay on average on the 30th day. Inventory turnover would remain at 13 times a year. Cost of goods sold (variable costs) are 75 percent of gross sales. Bad debts are estimated to be 0.75 percent of credit sales. Credit department expenses would be $51,400 per year plus the salary of2 individuals at $36,400 per year each. One P\""' of the staff would be reassigned from another division without affecting costs or productivity as that individual is currently redundant in that division. Marketing expenses are 4 percent of gross sales. Bank financing of working capital requirements is at 11 percent. References a. Should OB1 Sabres Ltd. adopt the proposed policy? 0 No 0 Yes b. Show the calculations. (Use 365 days in a year. Do not leave any empty spaces; input a "O" wherever required. Round the answers to the nearest whole dollar. Negative answers and the values to be deducted should be indicated by a minus sign. Enter answers in whole dollar, not in million. Do not round intermediate calculation.) Mc Graw H\". ( Prev Enucalmn . . 'l [I n 0 Type here to search ' 11,u27,r2tn9 E1 Next