A-D

Help Accounts receivable changes without bad debts Tara's Textiles currently has credeals of $363 million per year and an average collection period of 55 days Assume that the price of Tara's products is 560 per unit and that the variable costs are $55 perunt. The firm is considering an accounts receivable changes that wil result in a 20.4 increase in sales and 1995 increase in the average collection period. No change in bed dette expected the firm's equallok opportunity cost on ita Investment in accounts receivable 14.4 (Note: Une a 365 day year) a. Calculate the action profit contribution from that the film will realize it makes the proposed change 1. What marginal investment in accounts receivable will result? c. Calculate the cost of the marginal investment in account recevable d. Shout the firm implement the proposed change? What other information would be helpful in your analysis a. The additional profit contribution to the increase in sale units Round to the nearest doar Accounts receivable changes without bad debts Tara's Textiles currently has credit sales of $363 million per year and an average collection period of 55 days Assume that the price of Tara's products is 360 per unit and that the variable costs are $55 per unit. The firm is considering an accounts receivable change that will result in a 20.4% Increase in sales and a 1994 increase in the average collection period. No change in bad debts is expected. The firm's equal tisk opportunity cost on its investment in accounts receivable is 14.4% (Note Use a 365-day year) a. Calculate the additional profit contribution from news that the firm will raize if it makes the proposed change b. What marginal investment in accounts receivable will result? c. Calculate the cost of the marginal investment in accounts recev d. Should the fem implement the proposed change? What other Information would be helpful in your analysis? a. The additional profit contribution from the increase in sale units is (Round to the nearest dollar) P15-8 (similar to) Question Help Accounts receivable changes without bad debts Tara's Textiles currently has credit sales of $363 million per year and an average collection period of 55 days Assume that the price of Tara's products is 560 per unit and that the variable costs are $55 per unit. The firm is considering an accounts receivable change that we result in a 20.4% increase in sales and a 19.9% Increase in the average collection period. No change in bad debts is expected the firm's equal risk opportunity cost on its investment in accounts receivable is 14.4%. (Note: Use a 365-day year) a. Calculate the additional profit contribution from new sales that the firm will realize if it makes the proposed change b. What marginal investment in accounts receivable will result? c. Calculate the cost of the marginal investment in accounts receivable d. Should the firm implement the proposed change? What other information would be helpful in your analysis? a. The additional profit contribution from the increase in sale units is 5 (Round to the nearest dollar)