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Accounts receivable changes with bad debts A firm is evaluating an accounts receivable change that would increase bad debts from 2 % to 4 %
Accounts receivable changes with bad debts A firm is evaluating an accounts receivable change that would increase bad debts from to of sales. Sales are currently units per month, the selling price is $ per unit, and the variable cost per unit is $ As a result of the proposed change, sales are forecast to increase to units per'month. If the cost of capital is per month, should the firm change its credit policy?
The cost of the marginal bad debts of the firm is $
Round to the nearest dollar.
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