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Greedy Ltd is considering a proposal to change its credit policy from allowing debtors credit of 2 months to credit of 3 months. Sales
Greedy Ltd is considering a proposal to change its credit policy from allowing debtors credit of 2 months to credit of 3 months. Sales are currently 600,000 p.a. and as a result of the proposed change will increase by 15%. The contribution/ sales ratio is 20% and the cost of capital is 10%. Required Should the proposed change be made?
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The key benefits of the proposed change are that it will increase sales by ...
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Concepts In Federal Taxation
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
19th Edition
978-0324379556, 324379552, 978-1111579876
