Casa de Diseo Case Study Example | Topics and Well Written Essays - 750 words

Casa de Diseo - Case Study Exampleriod by offering citation terms of 3/10 net 60, what additional savings in resource investment be will result for the shortened cash conversion cycle, expect that the level of sales remains uniform?If the firms variable cost of $40,000,000 in sales is 80%, determine the reduction in average investment in accounts due and the annual savings that will result from this reduced investment, assuming that sales remain constant.Teresa Leal should continue focusing on how the company can reduce the accounts receivable (money customers owe the company), a move that will automatically reduce the bad debt expense. The company should continue with its brisk strategy of offering cash discounts since the analysis has confirmed that it is a wise idea. However, the companys solicitude should also focus on how it can reduce the cost of offering cash discounts since it appears as if it is quench relatively high (Fernandes,