TKL Services is a service-oriented company that has only been in existence for approximately two years. Like many new businesses, the company initially had sluggish sales and was only able to pay its expenses by accepting loans from its equity holders. Gradually, though, the customer base began to grow, and the number of jobs increased until the work schedule was filled to capacity. Recently, however, a critical problem has been identified in the company. Even though TKL has had more work than it can handle in the prior six-month period, it still has not produced a sufficient cash flow. Consequently, an immediate analysis became necessary in order to resolve this problem. That analysis revealed three alternative solutions: to change its customer billing policy, to institute an across-the-board increase of 15% to the price quote for all new jobs, and to.
             The first possible solution for TKL to increase its cash flow is to change its customer billing policy. When operations first began, the type of jobs that TKL received was of a low-maintenance, uncomplicated variety. These jobs were generally able to be completed by one individual with no more than eight hours of time invested. Consequently, soon after the job was started and expenses were incurred, TKL was able to collect payment for the job. In the last six months, however, the type of jobs that the company is receiving has changed significantly. The jobs currently coming into the shop are more time-consuming and complicated. In almost all cases, several employees are needed to complete the job, and the time involved is four to eight weeks rather than four to eight hours. These jobs ultimately pay more, but a possible waiting time of eight weeks in order to receive payment has certainly contributed to the company's cash flow problem. It is simply not feasible for TKL to pay out money week after week for a job and then wait to collect payment until that job i...