Advise the proposed credit policy should be

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A company has prepared the following projection for a year

Sales 21000 units

Selling price per unit Rs 40

Variable cost per unit Rs 25

Total cost per unit Rs 35

Credit Period allowed one month

Problem 1: The company proposes to increase the credit period allowed to its customers from one month's to two months .It is enforced the sales will be increased by 8%. The company desires returned of 25% on its investment you are required to examine and advise whether the proposed credit policy should be implemented or not ?

Reference no: EM132615602

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