CH7 HW Help Check my w 7 Problem 7-25 Credit policy decision with changing variables (L07.4] 10 Do Dome Metals has credit sales of $126,000 yearly with credit ferms of net 90 days. which is also the average collection period. Ascute the firm adopts new credit terms of 4/18, net 90 and all customers pay on the last day of the discount period Any reduction accounts receivable will be used to reduce the firm's bank loan which costs 10 percent. The new creditems will increase sale by 10% because the 4% discount will make the firm's price competitive aI Dome eams 30 percent on sales before discounts, what will be the net change in income if the new credit fermare adopted (Use a 360-day year) Hit Net change in income b. Should the form offer the discount Yes NO & Pier 710 ME Graw Ned>