Brilliant Corporation has the following data:

Selling price per unit

40

Variable cost per unit

30

Annual unit credit sales

2,880

Collection period

25 days

Opportunity cost

10%

Brilliant Corporation is considering easing its credit standards. If it does, sales will increase by 10%; collection period will increase to 30 days; bad debts losses are anticipated to be 5% of net credit sales; and collection costs will increase by P 1,500.

How much is the increase in the contribution margin?

What is the Average Accounts Receivable if the Days sales outstanding is 30 days?

If the proposed relaxation in credit standards is implemented, how much is the net benefit (loss) for Brilliant Corporation?

How much is the increase in the bad debts expense because of increase in sales?