[tt38]

As treasurer of the Universal Bed Corporation, Aristotle Procrustus is worried about his bad debt ratio, which is currently running at 6%. He believes that imposing a more stringent credit policy might reduce sales by 5% and reduce the bad debt ratio to 4%. If the cost of goods sold is 80% of the selling price, should Mr. Procrustus adopt a more stringent credit policy? Calculate and explain

[morgaine300]

I've posted our guidelines for submitting homework problems to you before. Please read it and follow it this time.

https://www.askmehelpdesk.com/financ...-b-u-font.html

Please stop just posting a homework problem and not showing us any attempts you've made to do your own work. If you do, I'm just going to keep posting the guidelines or ignore you.

[tt38]

As treasurer of the Universal Bed Corporation, Aristotle Procrustus is worried about his bad debt ratio, which is currently running at 6%. He believes that imposing a more stringent credit policy might reduce sales by 5% and reduce the bad debt ratio to 4%. If the cost of goods sold is 80% of the selling price, should Mr. Procrustus adopt a more stringent credit policy? Calculate and explain

I figured it out!