Greenland Dairy has annual credit sales of $34.5 million. The company's collection period is 75 days. The company has been financing its receivables with a bank overdraft at 16%. A proposal from a factoring business offers a cash advance of 75% of receivables at an interest rate of 12%. Further, the factor will collect all receivables within 30 days and charge 2% of collections. Greenland will save $50,000 in collections administration. Will the factoring arrangement save them money and if so how much? (6 marks)