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Business, 26.07.2019 05:20 daniiltemkin20

Johnson electronics is considering extending trade credit to some customers previously considered poor risks. sales would increase by $230,000 if credit is extended to these new customers. of the new accounts receivable generated, 5 percent will prove to be uncollectible. additional collection costs will be 2 percent of sales, and production and selling costs will be 71 percent of sales. the firm is in the 20 percent tax bracket. a. compute the incremental income after taxes.

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