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thats all that was given, ill take what you can give 1. A firm plans to make a change that will increase sales 16,000 desks
thats all that was given, ill take what you can give
1. A firm plans to make a change that will increase sales 16,000 desks days to 40 days. The price per unit is $95 and the variable cost per unit is $82. The required return on similar-risk investments is 13%. The current average investment in accounts receivable is $111,430.14. a. What is the cost of the marginal investment in accounts receivable for this change? b. If the additional profit contribution is $26,000, what is the net profit from this change? Should the firm make the change? Explain. 2. A firm plans to initiate an early payment discount of 3% if paid within 30 days. The firm expects sales to increase from 30,000 units to 37,000 units. It expects 85% of its customers to take the discount. The price per unit is $72. What is the dollar cost of the discount Step by Step Solution
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