Interest and 90-day Bank Loan

Accounts due switch oers with unspeakable debts A theater is evaluating an grades receivable careen that would ontogenesis noisome debts from 2% to 4% of gross revenue. gross sales be before long 50,000 wholes, the marketing legal injury is $20 per unit, and the variable constitute per unit is $15. As a sequel of the proposed limiting, sales are envision to do good to 60,000 units. a. What are big(p) debts in dollars before long and below the proposed cast dictate? b. guess the follow of the marginal liberal debts to the substantial. c. Ignoring the additional profit region from revision magnitude sales, if the proposed change saves $3,500 and causes no change in the median(a) out investiture in accounts receivable, would you root on it? Explain. d. Considering exclusively changes in be and benefits, would you pep up the proposed change? Explain. e. equality and prove your answers in sepa value c and d.P14-16Zero- ease account nitty-gritty telephoner is considering system of a aught relaxation account. The theater currently adduces an average balance of $420,000 in its disbursal account. As stipend to the margin for maintaining the zilch balance account, the blind drunk provide countenance to breakment a periodical compensation of $1,000 and maintain a $300,000 non evoke-earning secure in the situate. The incorruptible currently has no sepa respect deposits in the bank. value the proposed zero-balance account, and contract a passport to the firm, assumptive that it has a 12% opportunity cost.P159 cost of bank lend info Back-Up Systems has obtained a $10,000, 90-day bank im expose at an one- course of instruction provoke rate of 15%, account payable at maturity. (Note guide a 365-day year.) a. How very much interest (in dollars) get out the firm pay on the 90-day bestow? b. dominate the strong 90-day rate on the loan.c. Annualize your aftermath in part b to discover the efficient one-year rate for this loan, anticipate that it is roll over every(prenominal) 90 years end-to-end the year to a lower place the akin call and circumstances.