Initiating a cash discount Gardner {Tompanyr mrr'ently makes all sales on credit and offers no cash discount. The rm is considering offering a 3% cash discount for payment within 15 days. The rm's current average IIlleotion period is 60 days. sales are 40.000 units, selling price is $45 per unit, and variable cost per unit is $31. The rm expects that the change in credit terms will result in an increase in sales to 44,000 unitsI that ?0% of the sales will take the discount, and that the average collection period will fall to 30 days. If the r'm's required rate ofretum on equalrisk investments is 25%, should the proposed discount be offered? (Note: Assume a SEE-day year.) The additional prot contribution from additional sales is 5 :|. (Round to the nearest dollar.)