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both photos belong to the same question Fadhl Berhad is currently selling its products for RM400 per unit. All sales are on credit. In 2021,
both photos belong to the same question
Fadhl Berhad is currently selling its products for RM400 per unit. All sales are on credit. In 2021, 80,000 units were sold. Variable cost per unit is RM250. The company is deciding whether to relax its credit standards, which will increase unit sales by 6%, increase average collection period (ACP) from 25 days to 35 days, and increase bad debts from 3% to 4% of credit sales. Rompin's opportunity cost of tying up funds in its accounts receivable is 10%. 1. What is the additional profit from the increase in sales * 2 points O RM720,000 ORM480,000 O RM80,000 2. What is the cost of additional Bad debts? * 2 points O RM396,800 ORM960,000 O RM3,297,778 O RM2,222,222 RM32,000,000 3. What is the Net benefit/Loss ? * ORM396,800 ORM215,645 (RM396,800) O (RM215,645) 4. Fadhl should relax it's credit standard * OYes O No 2 points 1 point Step by Step Solution
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