27 Jun Question: Assignment 4 Instructions I Help Question
Assignment 4 instructions I help Question 2 (of 6) Seve & Ex Submit 10.00 poits The Salisbury Bicycle Shop has decided to offer credit to its customers during the spring selling season. Sales are expected to ba 200 bicycles. The average cast to the shop of a bicycla is $750. The owner knows that only 96 percent of the customers will be able to make their payments. To identify the remaining 4 percen, the company is cornsidering subscribing o a credil agency. The initial charge far this service i $1,000, with an additional chare of $8.50 pnividual report What is the cosl af the subscription to the credit ageny? (Do nat round intermediate calculations Cost of the subscription What is the savings fram callaction af the bad debts? (Do not round intermediate calculations. Savings from not selling to bad credit risks What are the company’s net savings from subscribing to the credit reports? (Do not round intermediate Company’s net savings Sh ould company subscribe to the agency? No Yes References eBook & Resources
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