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please answer all the question ala Fashion ucis a well-known fashion brand and mandar range of products. The company is considering expanding into the time
please answer all the question ala Fashion ucis a well-known fashion brand and mandar range of products. The company is considering expanding into the time It is estimated that although selling these wide ranges of products in the matter will generate additional annual sales of AED27 million, a high 101. of these out be uncollectible. The cost of sales is estimated to be 70% of sales. The companys 45% tax bracket. question a) Calculate Hala's incremental net income. (B Marks) b) If Hala's receivables turnover ratio is 5, how much will be Hala's incremental accounts receivable investment and after-tax return on that investment? 12 Marks) c) Hala's top management requires a minimum return on investment (RONof 25%, should Hala expand into the GCC market? Why or why not? (1 Mark) d) Given this additional sale, Hala estimates that the ordering cost will be AED 16 and the carrying cost will be AED 6 per unit. Calculate economic order quantity (EOQ) for the company. (2 Marks)
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