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Last year, Plastics Corp. reported cash sales of $100 and cost of goods sold of $40. Plastics estimates that sales would double if it allowed
Last year, Plastics Corp. reported cash sales of $100 and cost of goods sold of $40. Plastics estimates that sales would double if it allowed credit accounts, but it would incur an additional $50 of wages, uncollectible accounts, and interest to do this. Compute the net change in net income if Plastics allows credit sales.
Plastics net income will increase / decrease by $__________ if credit sales are allowed.
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