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Parker tooling ltd is considering lengthening its credit period from 30 to 60 days. The firm has annual sales of R450 000 and has variable

Parker tooling ltd is considering lengthening its credit period from 30 to 60 days. The firm has annual sales of R450 000 and has variable costs of 20% on sales. The change in credit terms is expected to increase sales to R510 000. What is the additional profit contribution from sales that will be realized from implementing the proposed change?

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