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Youth Bouncebeds Inc. has been selling trampoline beds for 'active' children for many years. it is currently studying a proposal to tighten credit policy in

Youth Bouncebeds Inc. has been selling trampoline beds for 'active' children for many years. it is currently studying a proposal to tighten credit policy in an attempt to reduce its bad debt expense ratio, now 5 percent to 3 percent. Sales are estimated to decline by 10 percent. The cost of sales is 80 percent of the selling price. Should the company adopt this new credit policy?

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