D. If the probability of payment exceeds 0.90 Terry’s Place is currently experiencing a bad debt ratio of 4%. Terry is convinced that, with looser credit controls, this ratio will increase to 8%; however, she expects sales to increase by 10% as a result. The cost of goods sold is 80% of the selling price. Per $100 of current sales, what is Terry’s expected profit under the proposed credit standards? A. $26.00 B. $15.40 C. $13.20 D. $25.60

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