$($b$)$ The liberalisation of country economy has created intense competition among local manufacturers. Bright Limited is a manufacturer of garden chairs and is considering relaxing its tight credit policy to boost sales in the light of the current market development. The change in policy will result in an increase in average collection period from $30$ days $(1$ month$)$ to $60$ days $(2$ months$).$ The review in credit policy is expected to increase sales in each year amounting to $25\%$ of the current sales volume.

Selling price unit GH$30$

Variable cost per unit GH$27$

Current annual sales GH$6,000,000$

The $25\%$ increase in sales will result in additional stock level of GH$250,000$ and additional accounts payable of GH$50,000.$ The required rate of return on the investment is $25\%.$