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A new financial manager at Wallace Company has proposed a change to the company's credit policy in order to lower the average collection period of

A new financial manager at Wallace Company has proposed a change to the company's credit policy in order to lower the average collection period of the customers who forgo the discount by 10 days. The cost of the increased credit effort is $10 million, and the manager estimates that the company will lose 3% in gross sales as a result. The discount customers will not be affected.
The proposed data, including the daily data, is reflected in the following table.
\table[[,Existing Policy,Proposed Policy],[I. General Credit Policy Information,,],[Credit terms,210 net 30,210 net 30],[Average collection period (ACP) for all customers,46.1 days,37.6 days],[ACP for customers who take the discount (15%),10.0 days,10.0 days],[ACP for customers who forgo the discount (85%),52.5 days,42.5 days],[II. Annual Credit Sales and Costs ($ millions),,],[Amount paid by discount customers,$284,$284
1st blank: should/should not
2nd blank: 362/315/390/4768
3rd blank: 338/4634/315/362
4th blank: -52/142/-47/134
5th blank: decrease/increase
6th blank: 338,397/964,792/16,918,647/1,022,392
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