Amount of increase in bad debts with proposed change

Assignment Help Financial Management
Reference no: EM131356848

A firm is evaluating an account receivable change that would increase bad debts from 2% to 4%. sales are currently 70,000 unites. the selling price is 40 per unit. and the variable cost per unit is 18. as a result of the proposed change, sales are expected to increase to 85,000. what is the amount of increase in bad debts with proposed change?

Reference no: EM131356848

Questions Cloud

What is percentage change in the bond price : A 9-year bond has a yield of 13.5% and a duration of 8.63 years. If the market yield changes by 60 basis points, what is the percentage change in the bond’s price?
Provide an overview of the organization you have chosen : Write a 1,050- to 1,400-word-paper including the following: Provide an overview of the organization you have chosen. How does this organization effectively raise awareness regarding stereotypes, prejudice, and discrimination
Describe the components of an expert system : Describe the components of an expert system.- What factors distinguish a BI system from an ES? What factors distinguish ES from NN?
Evaluate the effectiveness of this paragraph at three levels : Evaluate the effectiveness of this paragraph at three levels, starting with the paragraph structure. Is paragraph unified and cohesive? Does it have a clear topic sentence and sufficient support to clarify and expand on that topic?
Amount of increase in bad debts with proposed change : A firm is evaluating an account receivable change that would increase bad debts from 2% to 4%. sales are currently 70,000 unites. the selling price is 40 per unit. and the variable cost per unit is 18. as a result of the proposed change, sales are ex..
Describe a few structured and a few unstructured decisions : Describe a few structured decisions and a few unstructured decisions. Discuss the relative amount of structure in each decision.
Prepare a union position on the issue of future health care : Assuming that these issues will be major ones in the upcoming negotiations, prepare either a union or a management position on the issue of future health care benefits at GMFC.
The only change how much interest must delta pay : Delta corp. borrowed 200,000 for six months from the bank. the rate is prime plus 2 pecent. the prime rate was 6.5% at the beginning of the loan and changed to 9 percent after 4 months if this was the only change how much interest must delta pay ?
What the major difference between nationality and ethnicity : What is the major difference between nationality and ethnicity? Describe a view in psychology on how cultures will respond to globalization

Reviews

Write a Review

Financial Management Questions & Answers

  What is the firms expected rate of return

ABC Inc.'s stock has a 50% chance of producing a 21% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -30% return. What is the firm's expected rate of return? 1. 9.72% 2. 9.88% 3. 7.82% 4. 7.50% 5. 8.37%

  What is the npv to equity holders

A project has a debt-to-equity ration of 2/3, and it is kept constant. The unlevered return on equity is 8.94% and its net income is 1,250,000 for the 7 years of its life. The annual depreciation installment is 2,100,000 for the 7 years of the projec..

  Mortgage lenders base the mortgage interest rate

Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 700 or higher. How much more interest would you pay on a $207,000 home if you put 20% down and fin..

  Which of the is true of risk premium

Which of the following is true of risk premium?

  Regarding the efficient market hypothesis

Which of the following statements regarding the efficient market hypothesis is NOT accurate?

  What is the bonds yield to call-yield to maturity higher

Venture Corp issued 7 year 5% bonds due 2023 at par. This bond pays interest on a semi-annual basis. However, right after Venture issued the bonds, the Company missed its first earnings and at the same time, the interest rate environment changed. Ass..

  How is relevant costing used in decision making

How is relevant costing used in decision making? What would the relevant costs be in deciding whether to discontinue a segment of business? What would the relevant costs be in deciding how to optimize use of a constrained resource?

  Investment opportunity set formed with two securities

Consider an investment opportunity set formed with two securities that are perfectly negatively correlated. The global minimum-variance portfolio has a standard deviation that is always _________.

  Standard deviation of stock rate of return

Which of the following statements concerning the standard deviation of a stock’s rate of return is (are) correct?

  What was the firms end-of-year cash balance

You have just been hired as a financial analyst for Basel Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for..

  The head of your department is prominent researcher

The head of your department is a prominent researcher. A health research foundation has asked him travel to London to give an important speech at a conference. He will then travel to Paris to tour a research facility before returning home. He explain..

  Non-business bad debt and how much is deduction

Several years ago, R’s son, S, got into the restaurant business. R loaned S $10,000 to help him get the business going. No note was signed nor was any interest charged. Can R claim a bad debt deduction? If so, is the debt a business or non-business b..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd