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Caren's Canoes is considering relaxing its credit standards to encourage more sales. As a result, sales are expected to increase 1 5 percent from 3
Caren's Canoes is considering relaxing its credit standards to encourage more sales. As a result, sales are expected to increase percent from canoes per year to canoes per year. The average collection period is expected to increase to days from days and bad debts are expected to double the current percent level. The price per canoe is $ the variable cost per canoe is $ and the average cost per unit at the unit level is $ The firm's required return on investment is percent. What is the net increase in profit as a result of implementing the proposed plan? Assume a day year
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