G H dem Please do not use column A as I would like to use it to record my marking Question 4 (10 marks) product, a solar energy battery storage unit, on credit but has operated on a cash only basis. It is considering offering new credit terms going forward. ECC currently charges 50 per unit but expects it can increase the selling price per unit when it starts offering credit terms. In addition, ECC believes that sales volume will increase as a result of the offering of credit terms. Sales for the most recent year were 10,000 units. Variable costs will remain at $25 per unit (assume all costs are variable). ECC estimates that it will incur some bad debt losses with the addition of credit terms. EC plans on financing the delay in cash collection by using its existing line of credit 30.00 days Here are some more specifies related to the offering of credit terms: New Credit terms to be offered.net New price that ECC will charge for the battes 52.00 Expected increase in sales due to change in credit terms 650.00 units Annual bad debt losses due to change in credit terms S 25.000.00 Interest rate on line of credit 025 ECC's tax rate 25.00 Required (make sure you show your work): Should ECC offer net so day credit terms going forward? What is the estimated Impact of the decision to offer credit