FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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15. A company is considering increasing the period of credit allowed to customers from 30 days to 45 days. Annual sales are currently £1,200,000, and annual profits are £100,000. It is anticipated that allowing extended credit would increase sales by 15%, while net profit margins would be unchanged. The
| A |
Reduction in profit of £10,000 |
|
| B |
Increase in profit of £10,000 |
|
| C |
Increase in profit of £15,000 |
|
| D |
Increase in profit of £7,750 |
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