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A firm is considering relaxing its credit standards which will result in annual sales increasing from $1.50 million to $1.9 million. As a result of
A firm is considering relaxing its credit standards which will result in annual sales increasing from $1.50 million to $1.9 million. As a result of the change in credit standards bad debt expense is expected to increase from 0.3% to 1.3%. What is the cost of marginal bad debts? (Please round your answer to the nearest dollar but exclude the $ sign when typing your answer.) Answer: 1912000
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