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Manitoba Transport collects 75% of its monthly sales immediately and the rest at the end of the month; has production costs that are 60% of
Manitoba Transport collects 75% of its monthly sales immediately and the rest at the end of the month; has production costs that are 60% of sales; pays 50% of its bills immediately and the rest at the end of the month; and has four months of sales in inventory Required: (5 marks) What is its break-even sales growth rate? b) (5 marks) Suppose Manitoba Transport adopts a more efficient inventory policy that reduces the size of the inventory to three months of sales. Manitoba Transport also reduces its production costs to 55% of sales. What is the new break-even sales growth rate? DA 1103 Faglitch canada D Focus 140%
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