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relaxation of credit standards Louis Enterprises is considering relaxing it's credit standards to increase it's currently sagging sales. As a result of the polls relaxation
relaxation of credit standards Louis Enterprises is considering relaxing it's credit standards to increase it's currently sagging sales.As a result of the polls relaxation sales are expected to increase by 20% from 15,000 to 18,000 units during the coming year the average collection. Is expected to increase from 50 to 60 days and bad debt are expected to increase from 3% to 4.5% of sales. The sale price per unit is $42 and the variable cost per unit is $33 the firms required return on equal missed investments it's 9.5% evaluate the proposed relaxation and make a recommendation Note assume a 365 day year
As a result of the polls relaxation sales are expected to increase by 20% from 15,000 to 18,000 units during the coming year the average collection. Is expected to increase from 50 to 60 days and bad debt are expected to increase from 3% to 4.5% of sales.
The sale price per unit is $42 and the variable cost per unit is $33 the firms required return on equal missed investments it's 9.5% evaluate the proposed relaxation and make a recommendation
Note assume a 365 day year
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