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Birdland Inc. has a current bad debt ratio of 6%. Their new controller is proposing tighter credit controls which he estimates can reduce this ratio
Birdland Inc. has a current bad debt ratio of 6%. Their new controller is proposing tighter credit controls which he estimates can reduce this ratio to 2%. Further, he estimates sales will reduce by 8% as a result. The cost of goods sold is 75% of the selling price. Per $100 of current sales, what is Birdland Inc.s expected profit under the proposed credit standards?
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