subject
Business, 21.09.2020 17:01 neariah24

Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $540,000 in additional credit sales, 15 percent are likely to be uncollectible. The company will also incur $18,100 in additional collection expense. Production and marketing costs represent 72 percent of sales. The firm is in a 30 percent tax bracket and has a receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 12 percent desired return. a-1. Calculate the incremental income after taxes.

ansver
Answers: 3

Another question on Business

question
Business, 23.06.2019 02:00
What percentage of hard rock's profit is derived from retail shop sales?
Answers: 1
question
Business, 23.06.2019 03:00
Atennis club charges a monthly membership fee of $150 and charges it members $10 per hour to use a court. there's also $500 fee to become a member. stella joined the tennis club last spring, and she has been a member for 5 months. she has been playing 10 hours of tennis each month. stella values an hour of her time at $20. during a boring afternoon meeting, stella thinks about reserving a court to work on her serve for an hour tonight. what's stella's opportunity cost of working on her serve for an hour?
Answers: 1
question
Business, 23.06.2019 03:30
What does the term "smalling up" mean, according to white? what ways have you or people you know had to "small up"? if you haven't, what ways could you?
Answers: 2
question
Business, 23.06.2019 09:30
Is 6ixnine getting out of jail this year?
Answers: 2
You know the right answer?
Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although thes...
Questions
question
Mathematics, 10.02.2021 07:00
question
Mathematics, 10.02.2021 07:00
question
Mathematics, 10.02.2021 07:00