What is the minimum expected increase in profit necessary

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Problem 1: Huyt Limited is considering a change in credit policy which is expected to increase accounts receivable from $20,000 to $83,000 and increase sales revenue from $240,000 to $332,000 with all other working capital items unaffected. Huyt Limited requires a return of 12% on investments in working capital. What is the minimum expected increase in profit necessary to justify the change in credit policy?

Reference no: EM132963065

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