Advise Siyadula if it should change its credit terms. Show all calculations to support your advice. INFORMATION Siyadula Enterprises credit terms are currently 3/10 net 30 days. In order to stimulate sales, the business is considering changing its credit terms to 5/15 net 30 days. The following information relates to the current and proposed terms:

	Current	Proposed
Selling price	R220	R220
Variable costs	R80	R80
Debtors collection period	40 days	35 days
Credit sales	12 000 units	15 000 units
Bad debts	2% of sales	1% of sales
Percentage of customer who make used of the discount	40%	60%
Required rate of return	16%	16%