Problem
A company wants to increase its installed capacity, which currently stands at 60% to 90%. To do so, it is studying an increase in its credit policy from 30 days to 60 days, expecting a 20% increase in sales. Currently its sales are 120,000 units with a selling price of $5.50.00 MXN, a variable cost of 60% and fixed expenses of $70,000.00 MXN.
Calculate the average balance in accounts receivable after the increase in credit days.