Question

You are the credit manager for McHale Supply Inc. One of your sales staff has made a $60,000 credit sale to Monteith Technology, a manufacturer of small computers. Your responsibility is to decide whether to approve the sale. You have the following data for the computer industry and Monteith:
The salesperson believes that Monteith would order about $240,000 per year of materials that would provide a gross margin of $40,000 to McHale if reasonable credit terms could be arranged.

Required:
State whether or not you would grant authorization for Monteith to purchase on credit and support your decision.


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  • CreatedSeptember 22, 2015
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