Parker tooling ltd is considering lengthening its credit period from 30 to 60 days. The...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Parker tooling ltd is considering lengthening its credit period from 30 to 60 days. The firm has annual sales of R450 000 and has variable costs of 20% on sales. The change in credit terms is expected to increase sales to R510 000. What is the additional profit contribution from sales that will be realized from implementing the proposed change?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
