Gardner Company currently makes all sales on credit and offers no discount. The firm is considering offering a $2\%$ discount for payment within $30$ days. The$$ firm's current average collection period is $60$days$,$ sales are $40,000$ units per$$ month, selling price is $$$$47$ per$$ unit, and variable cost per unit is $$$$36.$ The firm expects that the change in credit terms will result in an increase in sales to $43,000$units$,$ that $70\%$ of the customers$($and $70\%$ of the dollar volume of$$ sales$)$ will take the discount and pay on day $30,$ and the other customers will continue to pay the full invoice on day $60.$ The$$ company's cost of capital is $0\mathrm{.}5\%$ per month. Should it offer the discount? $($Note$$: Assume a$365-$day year.$)$

what is the additional profit contribution from additional sales?

what is the amount of cost that will be saved due to the reduction in average accounts receivable?

what is the cost of early payment discount to customer?