Solution manual principles of managerial finance by gitman 10th chapter 14

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... $3,336,227 Chapter 14 Working Capital and Current Assets Management 359 (d) The additional profitability of $6,000,000 exceeds the additional costs of $3,336,227 However, one would need estimates of. .. cost of bad debts Therefore, the policy is recommended P14-9 LG 4: Relaxation of Credit Standards Challenge Additional profit contribution from sales = 1,000 additional units × ($40 − $31) Cost of. .. (50,000 × $20 × 0.02) (b) Cost of marginal bad debts $48,000 20,000 $28,000 (c) No, since the cost of marginal bad debts exceeds the savings of $3,500 (d) Additional profit contribution from sales:
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