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Mountain mechanical is considering a credit policy change that is expected to increase sales from $1,400,000 to $1,484,000 (6% increase). Bad debt losses are
Mountain mechanical is considering a credit policy change that is expected to increase sales from $1,400,000 to $1,484,000 (6% increase). Bad debt losses are expected to go down from 4.0% to 3.5% as a result. What is the total expected change in bad debt losses (including incremental sales and change in bad debt losses to existing sales)?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
