Jupiter inc does not currently extend credit to their customers. They marufacture drum sets and sell them to specialty retailers in Canada. Last year the company sold 1,050 drum sets at a price of $415.00 per drum set. The company is considering offering new credit terms of net 45 days to all customers to drive sales. They believe the competitive advantage this new policy would allow Apollo Inc to increase the selling price of their product by $15.00 per unit and increase sales by 150 units per year. Variable costs are expected to remain at $325 per unit and bad debt. expense will be $8,200 per year. (Note the wording here. Total Contribution Margin will go up for two reasons. First, there will be a price increase on the existing 1,050 drum sets being sold. Second, there will be an additional 150 drum sets sold at the new price. Perform your analysis on total sales and total contribution margin, not just the change in sales volume.) Apollo Inc expects all customers will take advantage of the new terms (i.e., they will all pay Apollo Inc 45 days after a sale is recorded). So, for the first time in the company's history they will have an accounts receivable balance in current assets and a bad-debt expense. The increase in sales will also mean an increase in the inventory they hold. Inventory is The increase in sales will also mean an increase in the imventory they hold. Imweritory is currently sitbing at $554,000 and is expected to increase by 15.0 percent. The firm will finance the additional imvestment in working capital by using a line of credit (bank loan) which charges 7.0 percent interest per year. [29] Required: A. Calculate the increase in current assets and the costs to finance that increase: (enter all numbers as whole numbers) B. Calculate the impact of changing the credit policy on contribution margin: A. Calculate the impact of changing the credit policy on contribution margin: C. Calculate the net impact of changing the credit policy