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    Deepak Singh
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    The document evaluates proposed changes to a company's credit policy. The proposal would double the collection period from 30 to 60 days. This is expected to: 1) Increase monthly profits by $200,000 2) Reduce average debtors and collection costs 3) Provide a net monthly benefit of $92,700 Adopting the proposal could help the company by lowering variable costs and improving customer relations through more lenient treatment, despite potential increases in some costs like bad debt expenses. Quality customers who pay on time would not be affected.

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    The document evaluates proposed changes to a company's credit policy. The proposal would double the collection period from 30 to 60 days. This is expected to: 1) Increase monthly profits by $200,000 2) Reduce average debtors and collection costs 3) Provide a net monthly benefit of $92,700 Adopting the proposal could help the company by lowering variable costs and improving customer relations through more lenient treatment, despite potential increases in some costs like bad debt expenses. Quality customers who pay on time would not be affected.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    5 views3 pages

    Adobe Scan Dec 04, 2021

    Uploaded by

    Deepak Singh
    The document evaluates proposed changes to a company's credit policy. The proposal would double the collection period from 30 to 60 days. This is expected to: 1) Increase monthly profits by $200,000 2) Reduce average debtors and collection costs 3) Provide a net monthly benefit of $92,700 Adopting the proposal could help the company by lowering variable costs and improving customer relations through more lenient treatment, despite potential increases in some costs like bad debt expenses. Quality customers who pay on time would not be affected.

    Copyright:

    © All Rights Reserved
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