Klein's Tools is considering offering a cash discount to speed up the collection of accounts receivable. Currently the firm has an average collection period of

63

days, annual sales are

32,000

units, the per-unit price is

$42,

and the per-unit variable cost is

$30.

A

2%

cash discount is being considered. Klein's Tools estimates that

82%

of its customers will take the

2%

discount. If sales are expected to rise to

34,000

units per year and the firm has a

14%

required rate of return, what minimum average collection period is required to approve the cash discount plan?