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QUESTION
35. ( 10 23. 3 ) Atlantic Iransport collects 15 percent of itsmonthly sales immediately and the rest at the end of themonth ; has production costs that are 60 percent of sales ;"pays 50 percent of its bills immediately and the rest at theend of the month ; and has four months of sales ininventory .a . Calculate the break - even sales growth rate .b. Suppose that Atlantic Transport adopts a moreefficient inventory policy that reduces the size of itsinventory to three months of sales . AtlanticTransport also reduces its production costs to 5 5percent of sales . What is the new break - even salesgrowth rate ?
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