Question
Asked Oct 2, 2019
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 If Gilmore's estimate of bad debts is correct (2.2% of credit sales) and the gross margin is 20%, by how much did Gilmore's income from operations increase assuming $150,000 of the sales would have been lost if credit sales were not offered?

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If sales of $150,000 is lost on account of not offering credit, this sale can be assummed to be incremental sales on offering credit. The gross margin needs to be multiplied with this sales, to arrive at the incremental gross income. However there would be an inc...

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