Kanta Ben wanted to be an owner manager but made her application late for the CMTP Accounting Firm She decided to work at Salim's Bicycle shop until she finishes her business plan to join another business group. Salim's Bicycle shop has decided to offer credit to its customers during the summer selling season. Sales are expected to be of 200 bicycles, the average cost to the shop of the bicycle is $750. Salim, the owner, knows that 96% of the Customers who na to 8:20 AM Salim's Bicycle shop has decided to offer credit to its customers during the summer selling season. Sales are expected to be of 200 bicycles, the average cost to the shop of the bicycle is $750. Salim, the owner, knows that 96% of the customers will be able to make their payments. However, in order to identify the remaining 4%, the company is considering subscribing to a credit agency owned by the CMTP Financial Group The initial charge for the credit service is $2,000 fixed rate plus an additional charge 8:21 AM The initial charge for the credit service is $2,000 fixed rate plus an additional charge of $10 per individual report. Salim has discussed this with Kanta Ben, and has said that if we don't save at least $1,000, then it's not worth going with the credit agency. According to Kanta Ben's analysis and Salim's condition of $1,000, should Salim's Bicycle Shop subscribe to the agency? Show all your calculations. (6 marks) Kanta Ben wanted to be an owner manager but made her application late for the CMTP Accounting Firm She decided to work at Salim's Bicycle shop until she finishes her business plan to join another business group. Salim's Bicycle shop has decided to offer credit to its customers during the summer selling season. Sales are expected to be of 200 bicycles, the average cost to the shop of the bicycle is $750. Salim, the owner, knows that 96% of the Customers who na to 8:20 AM Salim's Bicycle shop has decided to offer credit to its customers during the summer selling season. Sales are expected to be of 200 bicycles, the average cost to the shop of the bicycle is $750. Salim, the owner, knows that 96% of the customers will be able to make their payments. However, in order to identify the remaining 4%, the company is considering subscribing to a credit agency owned by the CMTP Financial Group The initial charge for the credit service is $2,000 fixed rate plus an additional charge 8:21 AM The initial charge for the credit service is $2,000 fixed rate plus an additional charge of $10 per individual report. Salim has discussed this with Kanta Ben, and has said that if we don't save at least $1,000, then it's not worth going with the credit agency. According to Kanta Ben's analysis and Salim's condition of $1,000, should Salim's Bicycle Shop subscribe to the agency? Show all your calculations. (6 marks)
