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Assume current sales are all on cash basis. Monthly sales are $100,000 and cost of...

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Accounting

Assume current sales are all on cash basis. Monthly sales are $100,000 and cost of sales are $60,000 (60% of sales). Changing the sales terms to net 30 credit increases sales by $20,000. About 1% of the customers default. The opportunity cost of funds is 1.9% per month. In addition, credit department expenses of $3,000 will be incurred under the new policy. Which of the following is true

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