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Quiz. For increasing the sales from the current level of 5 million, The national company is considering 3 different credit policy to be more liberal.
Quiz. For increasing the sales from the current level of 5 million, The national company is considering 3 different credit policy to be more liberal. The ACP currently is 30 days. The management believes that due to new policies the following are expected. Policy A Policy B Policy C Im 0.5m Increase in sales 1.5m ACP 40days 60days 75days The selling price per unit is $15 and the variable cost is $12. No bad debts losses are expected. If the opportunity cost is 10%, which policy should company adopt? And why
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