Sisa Corporation has the following data: Selling price per unit Variable cost per unit.                      P70 Variable Cost per unit                                                               P45 Annual credit sales - units.                                                  50,400 Collection period.                                                               30 days Rate of return                                                                             20% Sisa Corporation is considering easing its credit standards. If it does, sales will increase by 25%; collection period will increase to 45 days; bad debts losses are anticipated to be 4% of the incremental sales; and collection  costs will increase by P31,645. If the proposed relaxation in credit standards is implemented, the net benefit (loss) for Sisa Corporation is

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 13E
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Sisa Corporation has the following data:

Selling price per unit Variable cost per unit.                      P70

Variable Cost per unit                                                               P45

Annual credit sales - units.                                                  50,400

Collection period.                                                               30 days

Rate of return                                                                             20%

Sisa Corporation is considering easing its credit standards. If it does, sales will increase by 25%; collection period will increase to 45 days; bad debts losses are anticipated to be 4% of the incremental sales; and collection  costs will increase by P31,645.

If the proposed relaxation in credit standards is implemented, the net benefit (loss) for Sisa Corporation is

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