Question

Nutty Productions Inc. generated service revenue of $ 30,000 and income from operations of $ 10,000. The company estimates that, had it extended credit it would have instead generated $ 60,000 of service revenue, but it would have incurred $ 25,000 of additional expenses for wages and bad debts. Using these estimates, calculate the amount by which Income from Operations would increase (decrease). Should the company extend credit?


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  • CreatedNovember 02, 2015
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