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Maddy is considering extending credit to some marginal customers. If credit is extended sales will increase by $30,000. Maddy, the credit manager estimates that 11%
Maddy is considering extending credit to some marginal customers. If credit is extended sales will increase by $30,000. Maddy, the credit manager estimates that 11% of these accounts will be uncollectible. Selling and production costs are expected to be 80% of costs and Harold anticipates extra collection costs of $3,500 of the additional sales. For this question's answer give the incremental income (loss) before taxes.
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