Maddy is considering extending credit to some marginal customers. If credit is extended sales will increase by $30,000.
Posted: Sun May 29, 2022 5:01 pm
Maddy is considering extending credit to some marginal customers. If credit is extended sales will increase by $30,000. Maddy, the credit manager estimates that 11% of these accounts will be uncollectible. Selling and production costs are expected to be 80% of costs and Harold anticipates extra collection costs of $3,500 of the additional sales. For this question's answer give the incremental income (loss) before taxes.