2. A company has been successful in reducing the amount of sales returns and allowances. At the same time, a credit card company reduced the credit card discount from 3% to 2%. What effect will these changes have on the company's net sales, all other things equal? a. Net sales will not change. b. Net sales will increase. c. Net sales will decrease. d. Either (b) or (c).
Solved
Show answers
More tips
- H Health and Medicine Reasons for the Appearance of Warts: Everything You Need to Know...
- G Goods and services What Are the Most Popular Services?...
- O Other What is the oldest joke ever told?...
- L Legal consultation How to Properly Inherit: Tips and Recommendations...
- C Computers and Internet Boost your processor performance with these easy tips...
- S Sport How does Bodyflex work: what is it and how does it work?...
- H Health and Medicine How to Whiten Teeth and Get the Perfect Smile...
- S Style and Beauty How to Properly Apply Eye Makeup: Tips from a Professional Makeup Artist...
- A Auto and Moto How Can Parking Sensors Help Drivers?...
- C Computers and Internet Make Money Online: Secrets and Essential Ways...
Answers on questions: Business
- B Business Please subscribe to this channelI need 300 subscribe...
- B Business 1: Cửa hàng KZE chuyên kinh doanh các thiết bị điện tử trong gia đình. Mẫu doanh thu ngày (triệu đồng) của của hàng KZE trong 6 ngày qua cho như sau: 13; 8; 15; 8; 10; 21. Hãy tính...
- B Business For sustainable development to become a reality, which approach offers the best opportunity for this to happen?...
- B Business Four pre-birth questions should be asked to assess perinatal risk and determine who should be present at the birth. which is one of the questions?...
- B Business Explain how local and regional economic systems and exchange networks have influenced and impacted each other over time....
- B Business Ethics is so important in financial accounting and reporting that the government has passed a law regulating ethical actions of businesses related to their financial reporting practices....
- B Business Critics of ansoff s matrix mention that the matrix does not:...
- B Business Cutter enterprises purchased equipment for $72,000 on january 1, 2013. the equipment is expected to have a five-year life and a residual value of $6,000. using the straight-line...
- B Business Besides possibly paying the premiums for a medical insurance plan, the insured is almost always responsible for making other, out-of-pocket payments. This practice helps keep overall...
- B Business Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as a whole number. a. Given the following: Ca = $120, Ig = $60,...
Ответ:
B) Net sales will increase.
Explanation:
Net sales = total sales - sales returns and allowances
If the percentage of sales returns and allowances is reduced, then total net sales should increase. E.g. total sales are $100, sales returns and allowances are $4, then net sales = $96. If sales returns and allowances decreases to $2, then net sales will be $98.
Also, if the fee that credit cards charge decreases by 1%, net sales will also increase. Credit card fees decrease total sales, e.g. you sell $50 using credit card and the credit card company charges you $1.50, your total sales will be $48.50, but if the credit card company only charges $1, then total sales will be $49.
Ответ: