BUSI 320 Comprehensive Problem 2 Version C

BUSI 320 Comprehensive Problem 2 Version C You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company. Each proposal is independent of the other. Answer all questions. Showing your work may earn you partial credit. Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Sales are projected to increase by 160,000 per year if credit is extended to these new customers. Of the new accounts receivable generated, 10% are projected to be uncollectible. Additional collection costs are projected to be 2% of incremental sales, and production and selling costs are projected...