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write a recommendation paper in a 200 to 250-word memo addressed to the CEO of Eboy Corporation. Include your Excel spreadsheet as an Appendix to
write a recommendation paper in a 200 to 250-word memo addressed to the CEO of Eboy Corporation. Include your Excel spreadsheet as an Appendix to your memo. Use Eboy Corporation as the name of the spreadsheet for your computations
Analysis of Initiating a Cash Discount Increase in units due to discount 50.00 Selling price @net 30 Variable Cost Per Unit 4200,00 2600.00 Additional Profit Contribution from Sales $80,000.00 Cost of Marginal Investment in Accounts Receivable Variable cost per unit Baw Material annual usage $2,600.00 1450 Accounts Receivable $443,000.00 $3,544,000.00 365 Sales Days Collection Period 45.625 AR Turnover 8 Average investment presently (wo disco $471,250.00 Variable cost per unit Raw Material annual usage Expected AR Turnover due to discount Average investment presently (with cash $2,600,00 1500 12 $325,000,00 Reduction in accounts receivable investr $146,250,00 Opportunity cost of funds Cost Savings from reduced investment ir 12.50% $18,281.25 Cash Discount term Percentage of customers to take discount Raw Material annual usage (new) Selling price per unit Cost of Cash Discount 2.00% 70.00% 1500 $4,200.00 $88,200.00 Net Profit (oss) from initiation of propos $10,081.25
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