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This is the template for the quesiton. c Karen's Canoes Income Statement No Change % of Sales NCOME STATEMENT Sales lariable Costs Material Labor Overhead
This is the template for the quesiton.
c Karen's Canoes Income Statement No Change % of Sales NCOME STATEMENT Sales lariable Costs Material Labor Overhead (Variable Portion) Selling Expense Collection Exp (Variable Portion) rotal Variable Costs rotal Fixed Costs 'rofit before Credit Costs Opportunity Cost of Investment in A/R Opportunity Cost of Investment in Inv Opportunity Cost of Bad Debts Expense iBT )pportunity Cost of Investment in A/R = Old Policy New Policy )pportunity Cost of Investment in Inventory = New Policy 300 100 70 5 15 5 195 Change in Sales * 100.00% Sales/Day * COGS % / D With Change Var Cost Ratio * Annual InvT/O * Given See below See below 2x per problem Cost of Funds = Cost of Funds = 1) 2) 3) 4) Total Total Bad debt % 2%
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