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need help on all parts please show work 2. the additional profit from the decreased marginal investment in A/R is ____? 3. the additional profit

need help on all parts please show work
2. the additional profit from the decreased marginal investment in A/R is ____?
3. the additional profit from the decrease in bad debts is ____?
4. the net profit or loss from implementing the proposed plan is___?
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Accounts recelvable changes. Tara's Texties currently has credit sales of $28 milion per month, an average collection period of 63 days, and bad debts equal fo 3.5% of sales. Assume that the price of Tara's products is $52 per unit and that the variable costs are $47 per unit. The form is considering tightening up their credit policy, allowing custorners 30 days rather than 63.10 pay their. bills With a stricter crodit policy in place, sales wall fall by 10%, but the average collection period will drop lo 30 days and the bad debts percentage will fall to 1%, Determine whether the company sheuld make this change if their cost of captal is 1.0% per month. (Note. Use a 365 -day year.) The cost from a decrease in saies is S (Round ts the nearest dollar)

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