What would be the incremental cost of carrying receivables if this change were made?
A) $108,750
B) -$116,250 (carrying costs would decline)
C) $157,900
D) -$225,000 (carrying costs would decline)

Question

Quizplus · Accepted Answer

The question implies that the change being made would result in a decline in carrying costs, so the incremental cost of carrying receivables would be negative. Option B is the only choice that reflects a decline in carrying costs.

What Would Be the Incremental Cost of Carrying Receivables If