J. James Book Publishers is trying to decide whether to offer a 3% cash payments made within 10 days, making its new terms 3/10, net 30 paying customers currently pay in 40 days under its present terms of ne analyst estimates that sales will stay the same. The existing bad-de the rate under the new policy will be the same. It is estimated that 40% paying customers will continue to pay in % cash discount for sent terms of net 30. A sales f J James main unchanged at $250 milion, and the made within 10 days, making its new terms 3/10, net 30. On average, ts 0 rage, its rate is 3% 4 0 40 days, on average. The company s annual cost of capital is 10% Annual sales will remain unchanged at $250 million, an variable cost ratio will continue to be 60%. The variable expenses for credit administration and collections will drop from 5% to 4% if the cash discount is implemented