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Initiating a cash discount Gardner Company currently makes all sales en credit and offers no cash discount. The form is considering offering a 5% cash

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Initiating a cash discount Gardner Company currently makes all sales en credit and offers no cash discount. The form is considering offering a 5% cash discount for payment within 15 days. The firm's current average collection period in 60 days, sales are 40,000 units, selling price is $43 por unit, and variable cost per unit is $34 The fim expects that the change in cred terms will result in an increase in sales to 45,000 units, that 70% of the sales will take the discount, and that the average coledion period will tail to 30 days. If the firm's required rate of retum on equal risk Investments is 10% should the proposed discount be offered? (Note: Assume a 365 day year) The additional profit contribution from additional sales is (Round to the nearest dollar)

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