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On past experience the credit controller reckons that there

DAM is considering accepting an order for 25 sanitary items. On past experience, the credit controller reckons that there is a probability of 33% that bad debts will arise. In any case, credit period will be 90 days and it is estimated that the cost of sending letters for the 25 units will be $ 10.

The selling price per unit is $ 50 and variable cost is $ 30. The company's requires a return of 20%.

RQD: Should the firm accept or reject the order?

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Basic Statistics: On past experience the credit controller reckons that there

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Basic Statistics: On past experience the credit controller reckons that there

Reference No:- TGS02717653

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