You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company.? Each proposal is independent of the other.? Answer all questions.? Type your answers in the table and submit this worksheet.? Showing your work may earn you partial credit.? If you wish to show your work, please do so under each question below the table.
Please see attachment
Expected increase in Sales i.e., Incremental sales
Projected to Uncollectible-8% of new accounts receivable
Additional collection costs- 3% of incremental sales