Principles of Managerial Finance
Principles of Managerial Finance
17th Edition
ISBN: 9781323419656
Author: Gitman
Publisher: PEARSON
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Chapter 15, Problem 15.9P

a.

Summary Introduction

To determine: The bad debts in dollars currently and under the proposed change.

b.

Summary Introduction

To determine: The cost of the marginal bad debt.

c.

Summary Introduction

To recommend: The additional profit contribution from increased sales, if the proposed change saves $3,500 and causes no change in the average investment in accounts receivable.

d.

Summary Introduction

To recommend: The all changes in costs and benefits, would you recommend the proposed change.

e.

Summary Introduction

To discuss: The part C and D

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