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What two ratios measure factors that affect profitability

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1. Mai Company has always provided its customers with payment terms of 1/10, n/30. Members of its sale force have commented that competitors are offering customers 2/10, n/45. Explain what these terms mean, and discuss the implications to Mai of switching its payment terms to those of its competitors.

2. What two ratios measure factors that affect profitability?

Reference no: EM132367059

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