3.

Suppose customers express greater satisfaction with the accuracy of their charge account

bills but the performance measures for the average age of accounts receivable and for bad

debts do not improve. Explain why this might happen.

b. Suppose the performance measures for the average age of accounts receivable, bad debts,

and unsold inventory improve, but total profits do not. Explain why this might happen.

Assume in your answer that the explanation lies within the company.

a.