- financial planning firm
- financial advisor certification
- low cost web hosting
At present the firm is selling 36000 units on credit at a price of Rs 32; the variable cost per unit is Rs 25 while the average cost per unit is Rs 29; average collection period is 68 days ; and collection expenses amount to Rs 10,000; bad debts are 3%
If the collection procedures are tightened , additional collection charges amounting to Rs 20000 would be required , bad debts will be 1 %; the collection period will be 40 days ; sales volume is likely to decline by 500 units.
Assuming a 20% rate of return on investments, what would be your recommendations? Should the firm implement the decision?
If the collection procedures are tightened , additional collection charges amounting to Rs 20000 would be required , bad debts will be 1 %; the collection period will be 40 days ; sales volume is likely to decline by 500 units.
Assuming a 20% rate of return on investments, what would be your recommendations? Should the firm implement the decision?
Financial Management Problem?
没有评论:
发表评论