Company ABC would like to initiate a cash discount of 2/10, which would result to the following:

Pro units to be sold for the Sellin rice r unit Variable cost er unit Fixed cost ar Present S stem 1,000 P3,ooo P2,300 PIOO,OOO 30 da s osed S em P3,ooo P2,300 PIOO,OOO 25 da s Avera e collection eriod Bad debts ercenta e based on ave. Re uired rate of return