Kanta Ben wanted to be an owner manager but made her application late for CMTP accounting.

She decided to work at Salims Bicycle shop until she finishes her business plan to join another group.

Salims Bicycle shop has decided to offer credit to its customers during the summer selling season. Sales are expected to be of 200 bicycles, the average cost to the shop of the bicycle is $750. Salim, the owner, knows that 96% of the customers will be able to make their payments. However, in order to identify the remaining 4%, the company is considering subscribing to a credit agency owned by the CMTP Financial Group.

The initial charge for the credit service is $2,650 fixed rate plus an additional charge of $16.75 per individual report.

Salim has discussed this with Kanta Ben, and has said that if we don't save at least $1,000, then it's not worth going with the credit agency.

According to Kanta Bens analysis and Salims condition of $1,000, should Salims Bicycle Shop subscribe to the agency? Show all your calculations.