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Required: Written Analysis of the Case The following information are given for YOUR Corporation: Unit Selling Price Unit Variable Cost Fixed Cost per unit Annual

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Required: Written Analysis of the Case The following information are given for YOUR Corporation: Unit Selling Price Unit Variable Cost Fixed Cost per unit Annual Credit Sales Collection Period Rate of Return P7.00 P4.50 P1.50 40,000 units 3 months 19% The business firm targets to increase its market share by adjusting its credit standards. With the new standards, the following changes are expected: Sales will increase by 25% Collection period will extend by one month Uncollectible accounts are estimated to be 4% on the incremental sales Collection costs will increase by P3,400 Should the proposed change in credit standards be adopted? Justify. Support your answer with computations

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