Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
M/s ABC is seeing relaxing its collection efforts. At current its sales are as Rs.40 lakhs, the ACP is here 20 days and variable cost to sales ratio is .8 and bad debts are as .05 percent. Relaxation in collection attempt is exacted to push sales up through Rs. 5 lakhs, raise ACP to 40 days and bad debt ratio to 0.06. ABC tax rate is 40%. Compute the effect of relaxing credit effort on net profit.
Solution:
? BD = bn (S0+ ? S) -b0 S0
= .06 (40+5) - .05 × 40
= 2.7 - 2
=.7 lakhs
? I = ? I = (ACPn - ACP0) [S0/360] + V(ACPn)( ?S/360)
= 40/360 (40 - 20) + 5/360 × 40 × .8
= 20/9 + 4/9
?I = 2.6666667
?NP = [ ?S (1 - V ) - ?BD] (1 - t ) - k?I
= [5 (.2) - .7] (.6) - .12 (2.666667)
= .18 - .32
= -.14 lakhs
As the effect on net profit is negative hence the credit efforts must not be relaxed.
Why is corn so frequently used in typical American foods? In what forms does it take when being part of those foods? How does that relate to the modern epidemic on obesity?
This variable deals along with the granting of credit. On one great all the customers are granted credit and conversely, none of them are granted credit irrespective of their credi
#questihow do we use emuneration method in interger programing
SSI, a meat/burger/chicken processing manufacturing plant loacted in Idaho, USA prepares
I only need the formulas in excel put in.
State the price determination under the market condition The price determination under the following market condition is as follows: 1) Pure competition: in this situation
tell me how go about charging for your services
What are the Features of zero base budgeting 1) Manager of a decision unit has to completely justify why there should be at all any budget allotment for his derision unit. This
Why might managers favour this ABC system instead of the older system that allocated all MOH costs on the basis of direct? labour?
The Work in Process account for Monty's Company contained the following entries: Work in Process Account Debit of $40,000 for direct raw materials Debit of $60,000 for direct labor
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd