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Egnab Inc. is approached by a new customer for an additional order of $7,500. Considering the following data: Variable Cost Ratio = 60% of Sales
Egnab Inc. is approached by a new customer for an additional order of $7,500. Considering the following data: Variable Cost Ratio = 60% of Sales Collection Expense Ratio = 5% of Sales Annual Interest Rate = 8% (360 days) and the Standard Credit Terms are 30 days, INSTRUCTION: (SHOW YOUR CALCULATIONS AND ROUND TO 2 DECIMAL PLACES) Should Egnab Inc. accept the order? Give your answer in complete sentences and defend it
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