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Answer the following questions based on the information below table [ [ , Current credit policy ( n / a ) , Proposed credit
Answer the following questions based on the information below
tableCurrent credit policynaProposed credit policy net Price ROVariable cost per unit ROQuantityMonthly rate,
a What is the incremental cash flows from switching credit policies?
pts
b What is the cost of switching?
pts
c What is your recommendation?
pts
d Assume that the variable cost and the price per unit remain constant, what is the breakeven sales increase? Interpret. pts
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