Question

A firm is contemplating an increase in the credit period from 30 days to 50 days. The

average collection period which is at present 45 days is expected to increase to 75 days. It is also

likely that the bad debt expenses will increase from the current level of 1 percent to 3 percent of

sales. Total credit sales are expected to increase from Rs. 30,000 to Rs. 35,000. The present average

cost per unit is Rs. 8, the variable cost is Rs. 7 per unit and the sales price is Rs. 10 per unit. Assume

that the fixed costs do not vary, there are 360 work days in a year and the firm expects a rate of

return of 12%. Suggest whether the firm should extend the credit period or continue with the existing

credit period.​

Answer 1

Answer:

write a report about the eco-friendly Diwali celebrated in you society with the headline as ‘Green Diwali, Great Diwali’. Include the following in your news report: Headline Dateline

introduction

short continuing paragraph

Explanation:

write a report about the eco-friendly Diwali celebrated in you society with the headline as ‘Green Diwali, Great Diwali’. Include the following in your news report: Headline Dateline

introduction

short continuing paragraph