A firm has the credit term of net 30 and the average collection period (ACP) of 30 days. If it switches to the term of 2/10 net 30, 50% of its customers will pay after 10 days, while the remaining customers will pay after 30 days. What will the new ACP be?

Select one:

A.

40 days.

B.

20 days.

C.

10 days.

D.

30 days.