A firm is considering relaxing credit standards which will result in an increase in annual sales from $3 million to $3
75 million, a decrease in the cost of annual sales from $2,225,000 to $2,000,000, an increase in additional profit contribution from sales of $10,000, and an increase in the average collection period of 15 days, from 20 to 35 days. The bad debt loss is expected to increase from 1 percent to 1.5 percent of sales. The firm's required return on investments is 15 percent. The net result of the firm relaxing its credit standards is ________. (Assume a 360-day year.)
A) $10,000
B) -$16,250
C) -$26,875
D) -$16,875
C
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Which of the following describes a disadvantage associated with classroom training?
A. Interaction with other salespeople B. The ability to use audiovisual materials C. The cost and time requirements D. Standardization of the training materials E. Use of executive time
Sustaining technologies enable something to be done that was previously deemed impossible
Indicate whether the statement is true or false