How did they get the credit sales and opportunity cost? Credit Sales Cost of Goods Sold (81.98
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Credit Sales Cost of Goods Sold (81.98 % of sales ) Gross Margin Additional Marketing Cost the new credit policy (assuming 1% of credit sales) Additional Administration Cost of Opening and Screening New Accounts (assuming 1% of sales from additional customers) Opportunity Cost (12.1 % interest rate) Net Advantage (Disadvantage) Current Policy 119 040.00 7,588.99 1,451.01 1,289.86 0,161.15 9 2 2 ACA 1 15 4,752.00 12 6,865.69 7,886.31 1,547.52 3,120.83 3,217.95 2 2 ACA 2 154,752.00 126,865.69 27,886.31 1,547.52 1,547.52 1,560.42 23,230.85 ACA 3 190,464.00 156,142.39 34,321.61 1,904.64 1,547.52 3,841.02 27,028.43 Credit Sales Cost of Goods Sold (81.98 % of sales ) Gross Margin Additional Marketing Cost the new credit policy (assuming 1% of credit sales) Additional Administration Cost of Opening and Screening New Accounts (assuming 1% of sales from additional customers) Opportunity Cost (12.1 % interest rate) Net Advantage (Disadvantage) Current Policy 119 040.00 7,588.99 1,451.01 1,289.86 0,161.15 9 2 2 ACA 1 15 4,752.00 12 6,865.69 7,886.31 1,547.52 3,120.83 3,217.95 2 2 ACA 2 154,752.00 126,865.69 27,886.31 1,547.52 1,547.52 1,560.42 23,230.85 ACA 3 190,464.00 156,142.39 34,321.61 1,904.64 1,547.52 3,841.02 27,028.43
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To calculate the credit sales and opportunity cost lets break down the given information 1 Current P... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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