Youth Bouncebeds Inc. has been selling trampoline beds for 'active' children for many years. It is currently studying a proposal to tighten credit policy in an attempt to reduce its bad debt expense ratio, now 5 percent to 3 percent. Sales are estimated to decline by 10 percent. The cost of sales is 80 percent of the selling price. Should the company adopt this new credit policy?
Multiple Choice
It doesn't matter, since profits don't change
It doesn't matter, since the customer will buy the product anyway.
There is not enough information
No, profits are reduced because of lost sales
Yes, profits increase because of the reduction in bad debt expense

Answers

Answer 1

Yes, Youth Bouncebeds Inc. should adopt the new credit policy as profits increase due to the reduction in bad debt expense.

To determine if the new credit policy should be adopted, we can compare the profit changes resulting from both reduced bad debt expense and decreased sales. Here's a step-by-step analysis:

1. Calculate the reduction in bad debt expense: 5% (current ratio) - 3% (proposed ratio) = 2% decrease


2. Calculate the estimated sales decline: 10% decrease


3. Determine the cost of sales: 80% of the selling price


4. Analyze the impact on profits: Reduced bad debt expense will increase profits, while decreased sales might lead to a decrease in profits. However, since the reduction in bad debt expense is significant (2% decrease), it outweighs the potential profit loss from the decline in sales (10%).

In conclusion, adopting the new credit policy will likely result in increased profits for Youth Bouncebeds Inc., making it a viable strategy.

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Related Questions

Megaline, Inc., with five divisions, follows the competitive form of the multidivisional structure. One division has not met the rate-of-return goals for the past year. Another division has exceeded the rate-of-return goals. The other three divisions met the rate-of-return goals. The headquarters office must decide where to allocate capital in the next year. Which of the following scenarios is the MOST likely? a. The highest-performing division will get the highest capital allocation because it has the best prospects for creating more wealth for the shareholders next year. b. All divisions will receive the same capital allocation for the next year because this organizational structure rewards divisional managers based on achievement of strategic goals. c. The average-performing divisions that met the rate-of-return goals will receive the highest allocation because their performance exactly matched corporate requirements. d. The poorest-performing division will get the highest capital allocation so that it can fix its problems and achieve the rate-of-return goal next year.

Answers

Answer:

A

Explanation:

The highest-performing division will get the highest capital allocation because it has the best prospects for creating more wealth for the shareholders next year.

an economist would say that the benefits of regional integration are determined by:

Answers

An economist would say that the benefits of regional integration are determined by the amount of trade creation.

Regional integration is when two or more countries come together in order to agree to work together for the benefit of all countries involved in the integration.

Forms of regional integration

Free trade area: this is when countries agree to remove the barriers to trade. Customs union: this when restrictions to trade are removed for both member countries and non member countries. Common market: in addition to the removal of restrictions to trade, there is also free movement of labour among member countries. Economic union: member countries adopt similar economic policies.

Benefits of regional integration

It increases market efficiency. It enhances global integration.

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C. F. Lee Inc. has the following income statement. How much after-tax operating income does the firm have? Sales $2,850.00, Costs 1,850.00, Depreciation 192.00, EBIT $ 808.00, Interest expense 285.00, EBT $ 523.00, Taxes (35%) 183.05, Net income $ 339.95

Answers

The right alternative is $525.20.

Operating earnings is the earnings earlier than the interest expense. The after-tax working profits is:

After-tax working earnings = $525.20

Multi-Step Income Statement:

The multi-step earnings statement is called that due to the fact it separates the cost of goods offered from the working charges and the running income from the non-operating revenues and costs for the length shown in the statement.

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How much is a standard tip?
•10-15 percent
•15-20 percent
•20-25 percent
•25-30 percent

Answers

Answer: B) 15-20 percent

Present and future values for different interest rates find the following values. compounding/discounting occurs annually. a. an initial $200 compounded for 10 years at 4% b. an initial $200 compounded for 10 years at 8% c. the present value of $200 due in 10 years at 4% d. the present value of $1,870 due in 10 years at 8% and at 4% e. define present value and illustrate it using a time line with data from part d. how are present values affected by interest rates?

Answers

a.The future value for the interest rate of 4% is  $296.05

b. The future value for the interest rate of 8% is $431.78

c. The present value for the interest rate of 4% is  $135.13

d. The present  value $1,870 due in 10 years at 8% and at 4% is $869.76, $1263.51 respectively.

What is future value?The value of an investment at a given point in the future is known as future value, on the other hand.The worth of an asset at a future date is its future value. It calculates the nominal future sum of money that a certain amount of money is "worth" at a given point in the future under the assumption of a specific interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function. Investors and financial planners consider the future value significant because they use it to determine how much an investment made today will be worth.

FV = P \((1 + r)^n\)

FV = Future value  

P = Present value  

R = interest rate

N = time

a. 200 x  \((1.04)^{10}\) = $296.05

b. 200 x \((1.08)^{10}\) = $431.78

PV = f /\((1 + r)^n\)

c. $200/ \((1.04)^{10}\)= $135.13

d. $1,870 / \((1.08)^{10}\)= $869.76

$2515 / \((1.04)^{10}\) = $1263.51

e. The present and future value serve as the foundation for the time value of money idea. The value of an investment in the present day is its present value.

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Write a question keep it simple

Answers

Answer:

Why do people break up if they love each other?

Explanation:

sorry it's not simple lol

what do you prefer local fundraising or global fundraising and why? (just one reason)

Answers

Answer:

Doing local fundraising for a large organization can sometimes seem complicated and unwieldy.  Whether you are running a local affiliate of a large national organization, or are responsible for raising funds in a single neighborhood for a small, city-wide charitable group, raising local money for larger groups presents a unique challenge. I prefer local fundraising

global fundraising

Explanation:

because you can help people without water and electricy

What affects your credit score most?

Answers

Your payment history is one of the most important credit scoring factors and can have the biggest impact on your scores. Having a long history of on-time payments is best for your credit scores.

How long does late payments stay on credit report?

Your credit report may contain late payments for up to seven years. They have the potential to lower your credit score, but the impact wears off over time.

However, not all late payments are recorded in your payment history.

The credit card company may charge you a late fee if you pay a bill with a credit card after the due date rather than on time, but your credit won't be harmed.

If the payment is more than 30 days overdue, the circumstance is different.

The impact on your credit ratings in this situation is determined by how long your account was past due before you made a payment. Thus, a payment that is 60 days overdue will do additional damage.

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Edge Company produces two models of its product with the same machine. The machine has a capacity of 142 hours per month. The following information is available.

Answers

Standard = (70 units * 1) = 70 hours

Deluxe = (140 - 70) = (70 hours / 2) = 35 units.

How to find the contribution margin

Required 1: Determine the contribution margin per machine hour for each model.

Product Contribution Margin

Standard

Deluxe

Contribution margin per unit

$50

$40

(/) Machine hours per unit

1

2

Contribution margin per machine hour

$50

$20

Step 2/3

Required 2: How many units of each model should the company produce?

Standard

Deluxe

Total

Hours dedicated to the production of each product

140

0

$140

Units produce for the most profitable sales mix

140

0

Contribution margin per unit

$50

0

Total contribution margin

$7,000

$0

$7,000

Required 3: Assume the maximum demand for the standard model is 70 units (not 600 units). How many units of each model should the company produce?

Standard

Deluxe

Total

Hours dedicated to the production of each product

70

70

140

Units produce for the most profitable sales mix

70

35

Contribution margin per unit

$50

$40

Total contribution margin

$3,500

$1,400

$4,900

Total available hours = 140 hours

Standard = (70 units * 1) = 70 hours

Deluxe = (140 - 70) = (70 hours / 2) = 35 units.

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what is the expected return of a portfolio consisting of three stocks, a, b, and c if a is 30% of the portfolio and expects a return of 10%, b is 20% of the portfolio and expects a return of 9%, and c is the balance of the portfolio and expects a return of 18%?

Answers

The expected return of a portfolio is a weighted average of the expected returns of the individual stocks in the portfolio, taking into account the proportion of the portfolio invested in each stock.

The expected return of a portfolio consisting of three stocks, A, B, and C, can be calculated using the following formula

Expected return = (Weight of stock A x Expected return of stock A) + (Weight of stock B x Expected return of stock B) + (Weight of stock C x Expected return of stock C)

Where:

Weight of stock A = 30%

The expected return of stock A = 10%

Weight of stock B = 20%

The expected return of stock B = 9%

Weight of stock C = 50% (100-30-20)

The expected return of stock C = 18%

By substituting the given values into the formula:

Expected return = (0.30 x 0.10) + (0.20 x 0.09) + (0.50 x 0.18)

Expected return = 0.03 + 0.018 + 0.09

Expected return = 0.138 or 13.8%

The expected return of the portfolio is 13.8%. This means that, on average, an investor can expect a return of 13.8% if they invest in this portfolio of stocks A, B, and C, considering the proportion of the portfolio invested in each stock and their expected return.

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Is the set of firms that facilitate the movement of goods from producers to consumers?

Answers

The distribution channel is the set of firms that facilitate the movement of goods from producers to consumers.

A distribution channel is what?

A distribution channel is a network of firms or middlemen that a commodity or service travels through before reaching the final consumer or buyer. Wholesalers, merchants, distributors, and even the internet are examples of distribution channels.

The downstream process, which addresses the issue of "How do we get our product to the consumer," includes distribution networks. Contrarily, the upstream process, commonly known as the supply chain, offers a response to the question, "Who are our suppliers?

What Exactly Is a Distribution Channel, and What Elements Does It Comprise?

The phrase "distribution channel" describes the techniques a business employs to get its goods or services to the final customer. A network of middlemen companies, including producers, distributors, and retailers, is frequently involved. Management of supply chains involves choosing and keeping an eye on distribution channels.

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ON
Did you follow the tips from a successful businessman or practitioner before you engaged in your business​

Answers

Answer:

Indeed, prior to starting my commercial activities in my business, I was advised on how large entrepreneurs carried out their activities, and on the tips that they gave regarding how to manage and organize the business.

This gave me the tools to organize my business in the most effective way, avoiding common beginner mistakes when using commercial strategies that have already been tested by successful entrepreneurs.

In economics a computer bought by a firm for its account keeping is classified differently to a computer bought by an individual for playing games and surfing the internet. Explain why.

Answers

Answer:

12

Explanation:

the minimum payment the landowner will accept to put his land into use is called:

Answers

The minimum payment that a landowner will accept to put their land into use is commonly referred to as "rent." Rent is the compensation or fee paid by a tenant or user to the landowner in exchange for the right to use the land for a specified period.Rent serves as a form of economic return for the landowner, representing the value of the land's productive capacity or its potential for generating income.

The landowner may establish a minimum rent amount based on various factors, including market conditions, the land's quality, location, and its potential for generating profits or other benefits.

Negotiations between the landowner and the potential user typically revolve around agreeing on an appropriate rent amount that satisfies both parties. The landowner seeks to maximize their return, while the user aims to secure the land at a price that aligns with their intended use and profitability.Ultimately, the minimum payment or rent represents the price at which the landowner is willing to lease or allow the use of their land, providing an economic incentive for the land to be put into productive use.

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why do people grow vegetables in nepal​

Answers

Answer:

People grow vegetables in nepal to earn money by selling it and to fulfill demand of family

how does lever simplify the work? explain.​

Answers

Explanation:

A lever works by reducing the amount of force needed to move an object or lift a load. A lever does this by increasing the distance through which the force acts. ... Instead, they make the work easier by spreading out the effort over a longer distance.

Fractional reserve banking increases the money supply in an economy by:
A. preventing depositors from leaving a lot of money in banks.
B. requiring the government to print more money in certain
situations.
C. loaning money that would otherwise be held in a bank.
D. accepting currencies from many different countries to pay off
loans.

Fractional reserve banking increases the money supply in an economy by:A. preventing depositors from

Answers

Answer:

C. loaning money that would otherwise be held in a bank.

Explanation:

Fractional reserve banking increases the money supply in an economy by "loaning money that would otherwise be held in a bank."

Fractional reserve banking is known as a system of banking whereby the banks hold a fraction of what customers deposit as reserves. Then the banks use the remaining to give loans and thereby creating and increasing the supply of money. Commercial banks practise this type of banking system. This tells of how commercial banks are affecting the money supply. The bank reserves are usually held as cash in the bank. It can also as balances in the bank's account at their central bank.

Answer:

C. loaning money

Explanation:

just did it on a-p-e-x

____ is not a physical work environment characteristic.

Weather
Shift work
Temperature
Equipment

Answers

Answer:

The answer is shift work

what is the correct temperature of range of cold ingredients?

Answers

Answer:

40 degrees Fahrenheit and below

Explanation:

Any food remains fresh when it is exposed and kept to a certain degree of temperature. From 41 to 135 degrees range, any food can be maintained fresh and fit for its usage. For cold foods, the temperature ranging below 40 degrees Fahrenheit is said to be appropriate. This temperature helps to restrict and control the growth of microbes that spoil the food.

In 1949, Sycamore, Illinois built a hospital for about $500,000. In 1987, the county restored the courthouse for about $2.4 million. A price index for nonresidential construction was 14 in 1949, 92 in 1987, and 114.5 in 2000. According to these numbers, the hospital cost about a. $4.1 million in 2000 dollars, which is more than the cost of the courthouse restoration in 2000 dollars. b. $4.1 million in 2000 dollars, which is less than the cost of the courthouse restoration in 2000 dollars. c. $3.6 million in 2000 dollars, which is more than the cost of the courthouse restoration in 2000 dollars. d. $3.6 million in 2000 dollars, which is less than the cost of the courthouse restoration in 2000 dollars.

Answers

Answer:

a. $4.1 million in 2000 dollars, which is more than the cost of the courthouse restoration in 2000 dollars.

Explanation:

The computation is shown below;

Cost in 2000 dollars is

= $500,000 × (Price index in 2000  ÷ Price index in 1949)

= $500,000 × (114.5 ÷ 14)

= 40,89,285.71

= $4.1 million  

So overall we can see that the $4.1 million in the year 2000 more than the cost of the courthouse

Therefore the option a is correct

when speaking with a venture capitalists you should always requrie that they sign a non disclosure agreement. true or false

Answers

The given statement "when speaking with a venture capitalist, it is not always necessary to require them to sign a non-disclosure agreement is false because a non-disclosure agreement (NDA) is a legal document that binds two parties to maintain the confidentiality of information shared between them.

It is also known as a confidentiality agreement (CA), secrecy agreement (SA), or proprietary information agreement (PIA). An NDA may be required if a business idea or strategy is being shared with a potential investor, collaborator, or partner. The NDA serves as a legal document that ensures that the information is not shared with any third party.

However, it is not always necessary to require a venture capitalist to sign an NDA. This is because some venture capitalists may not be willing to sign an NDA. They may feel that it goes against their business philosophy or that it may limit their ability to invest in other businesses that may have similar ideas. Additionally, venture capitalists may have access to information that is similar to the information being shared, and they may not want to be limited in their ability to invest in these other businesses.

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A major risk that can be eliminated through a swap is exchange rate risk, _____ .

Group of answer choices

a. None of the options are correct.

b. but swaps can be less efficient in this than just trading at the expected spot exchange rates each year

c. but only if the bid-ask spreads are wide

d. but only to the extent that the foreign counterparty, or swap bank, will not default in the currency swap

Answers

A major risk that can be eliminated through a swap is exchange rate risk,  d. but only to the extent that the foreign counterparty, or swap bank, will not default in the currency swap

A major risk that can be eliminated through a swap is exchange rate risk, but only to the extent that the foreign counterparty or swap bank involved in the currency swap does not default. A currency swap allows two parties to exchange cash flows in different currencies, typically to manage or eliminate exposure to fluctuations in exchange rates. By entering into a currency swap, companies can convert their obligations or cash flows from one currency to another, reducing the impact of exchange rate movements.

However, it is important to note that while a swap can mitigate exchange rate risk, there are other risks associated with swaps, such as credit risk. The risk of default by the foreign counterparty or swap bank could still exist, which may introduce a new set of risks to consider. Therefore, although swaps can address exchange rate risk, it is crucial to evaluate and manage other risks involved in the swap agreement as well.

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Which of the following phenomena can a nation expect when it opens (more widely) to international trade? Some industries will prosper and expand. Some industries will suffer and shrink. Prices will rise. Prices will fall.

Answers

The overall impact of trade liberalization on a nation's economy is complex and can involve a combination of these phenomena.

When a nation opens itself to international trade, it can expect to experience several phenomena, including:

Some industries will prosper and expand: Increased international trade allows domestic industries to access larger markets and benefit from economies of scale. Industries that are competitive in the global market may see growth and expansion as they capture new customers and take advantage of international demand.

Some industries will suffer and shrink: On the flip side, industries that face strong competition from foreign producers may struggle to compete. The influx of imported goods can lead to a decline in the market share and profitability of these industries, potentially leading to downsizing or even closure.

Prices will rise: Depending on the specific circumstances, opening up to international trade can result in higher prices for certain goods and services. This can happen when domestic industries face increased competition, which may reduce their ability to maintain lower prices. Additionally, tariffs or other trade barriers imposed by other countries can raise the prices of imported goods.

Prices will fall: Conversely, international trade can also lead to lower prices for certain goods and services. When domestic industries face competition from lower-cost foreign producers, they may need to reduce their prices to remain competitive. This can benefit consumers by providing access to a wider variety of affordable products.

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Whose interests should a financial manager consider paramount when making a decision? the senior management and associated colleagues at the executive level within the company the stockholders who have risked their money to become owners of the company the financial manager's own interests the employees and associated stakeholders who are employed by the company the public who consume the company's goods and services

Answers

The interests should a financial manager consider paramount when making a decision is "the stockholders who have risked their money to become owners of the company".

The financial manager in the company or an organization who manages the accounting and financial details of the company. The financial manager is also analyzed the financial data of the company.

The stockholders have benefit of a higher stock price on offer. The stockholder buys the stocks from the company. So, that the company can improve and increase their growth in the market.

That's why, the stockholders interest should a financial manager consider paramount when making a decision.

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Self-insurance means:

Question 4 options:

A. Insuring your voice.


B. Buying health insurance.


C. Assuming your own financial risk for some of your property.


D. Buying extra insurance from your insurance company.

Answers

Answer:

assuming your own financial risk for some of your property

Answer:

Assuming your own financial risk for some of your property

The organization, distribution, balance, and general relationship of actors and objects within the space of each shot is called ________.

Answers

It should be noted that organization, distribution, balance, and general relationship of actors that exists in space of each shot is called Composition.

What is Composition?

Composition serves as the coming together of organization as well as balance in a specific space.

This usually help to bring a good relationship between the elements of the organization and aid corporation.

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an association of two or more companies engaged in a solitary business enterprise for profit without actual partnership or incorporation is called a(n) .

Answers

A joint venture (JV) is an agreement between two or more parties to combine their resources in order to carry out a certain objective.

JVs are not partnerships. That phrase only applies to a single company that was created by two or more people. JVs combine two or more separate businesses into a single one that might or might not be a partnership.

What are the four different entry methods for joint ventures?

Licensing, contract manufacturing, management contracting, and joint ownership are the four categories of joint ventures. This type of joint venture necessitates that the corporation enter a foreign market with a licence agreementrship.

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Which of the following statements best characterizes the bottom line of security for e-commerce?

A) Good security is expensive but critical, and it is the responsibility of the customer to ensure that his or her private information is secure.

B) Good security is inexpensive but critical, and it is the responsibility of the customer to ensure that his or her private information is secure.

C) Good security is expensive but crítical, and it is the responsibility of the business to ensure that the customer's private information is secure.

D) Good security is inexpensive but critical, and it is the responsibility of the business to ensure that the customer's private information is secure.

Answers

Answer:

Good security is expensive but critical, and it is the responsibility of the business to ensure that the customer's private information is secure. C

Explanation:

based on employment statistics, age diversity at work will continue growing. thus, findings from research examining age diversity will become increasingly useful in managing the workforce. which statement about those research findings is accurate?

Answers

Older workers are less likely to quit their jobs when dissatisfied at work statement about those research findings is accurate.


What is employment?

Employment implies the condition of having some work or being utilized. Assuming that one needs to utilize somebody, one needs to pay them.

Older workers are less inclined to stop their positions when disappointed in working. Age contrasts in work fulfillment center upon attributes of the actual gig: more established laborers are more fulfilled than their more youthful partners.

As, they really have "better" or all the more exceptionally compensated positions. Work fulfillment for the most part increments with age, as indicated by the overview.

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How much profit was generated by the sales of gold label and black label combined

Answers

The total profit from the sales of the black sale and gold label is $5750.

The data for the gold label and black label is included in the table.

You can compute the gold label's profit as,

Profit from gold label = number of bottles sold × average profit

Given that 1000 bottles of the gold label with an average profit per bottle is $2.75 have been sold.

Now, determine the profit generated by bottles with gold labels as,

Profit from gold label = 1000 × $2.75

                                 = $2,750

Black Label's profit can be computed as follows:

Profit from black label = number of bottles sold × average profit

It is assumed that 2000 bottles of black label, with an average profit of $1.50 per bottle, have been sold.

Calculating the profit generated by bottles with black labels as follows:

Profit from gold label = 2000 × $1.50

                                 = $3,000

Next, calculate the combined revenue from sales of the gold label and black label as follows:

Combined profit =  Gold label profit + Black label profit

                         = $2,750 +$3,000

                         = $5,750

Hence, $5,750 is the correct answer.

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How much profit was generated by the sales of gold label and black label combined
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How would the pKa of the unknown acid be affected (higher, lower, or no change) if the following errors occurred? Please explain.a) The pH meter was incorrectly calibrated to read lower than the actual pH.b) During the titration several drops of NaOH missed the reaction beaker and fell onto the bench top.c) Acid was dissolved in 75 mL of distilled water rather than 50 mL of distilled water.Also, the same question, but if it says: How would the molar mass of the unknown acid be affected (higher, lower, or no change) if the following errors occurred? Please explain.Same things that are asked in part a,b, and c. the practice of building empires by taking control of the governments and economies of other countries is called What is a hole in a graph asymptote? PLSSSSS HELLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLP IL GIVE MRE POINTS the book of joel records a terrible plague of _____that god sent to punish his people for their sins. The largest beverage can was a cylinder with height 4.67 meters and diameter 2.32 meters. What was the surface area of the can to the nearest tenth? What is the role of the Scrum Master Which of the following is a good example of networked channel relationships?A. General ElectricB. ExpediaC. McDonald's Southern States began charging people to vote and this was called. *Voters TaxElection TaxPoll FeesPoll TaxCorrect answer Poll Tax species are found within a community because they have similar habitat needs: Which of these has the BIGGEST negative impact on North Africas economy? A) The Savannas B) The Sahara Desert C) The Kalahari Desert D) The Mediterranean Sea people who work at w. l. gore have specialized capabilities and skills that help set gore apart from its competition. which criteria of hrm does this exemplify? "When you are content to be simply yourself and don't compare or compete, everyone will respect you." This quote best matches the philosophy of: how much difference does it make in your results if the value you use for the specific heat of the calorimeter cup is off by as much as 20% What is campaign concept? Metro Recycling recycles an average of 9400 lb of material per day. Based on the graph, find the following for an average day: A. How many pounds of paper are recycled? B. How many more pounds of glass than plastic are recycled? c. What percent of the recycled material is in the "other" category? Other Plastic Paper 41% Metal 26% Regarding the supply of a financial product/service, explain: (200-250 words each)a) what is meant by the term consumer contract; andb) what is meant by the term personal advice. Which factor of transformational leadership supports followers as they try new approaches and develop innovative ways of dealing with organizational issues? a. Inspirational motivation b. Intellectual stimulation c. Individualized consideration d. Idealized influence A horizontal force acts on a block sliding on a horizontal surface. the force of kinetic friction between the block and the surface is 0.5 n. if the direction of the applied force is reversed, which is true? assuming that product differentiation is successful, which of the statements best describes how advertising can affect the demand curve for the monopolistically competitive firm?