Last year, the sales of OSP Inc. Amounted to R$5$ million and its most recent statement of financial position revealed trade receivables of R$822000.$ All sales were on $30$ days$$ credit to customers. In order to encourage customers to pay in time, the management accountant of OSR Inc has proposed introducing an early settlement discount of $1\%$ for payment within $30$ days, while increasing its normal credit period to $45$ days. It is expected that, on average, $60\%$ of customers will take the discount and pay within $30$ days. $30\%$ of the customers will pay after $45$ days, and the rest of the customers will not change their current paying behaviour, OSP Inc. Is charge interest of $12\%$ per annum on its overdraft facility

Required:

Determine the net benefit $($cost$)$ of the proposed changes in trade receivables policy

A$.$ Net cost of approximately R$7000$

B$.$ Net benefit of approximately R $13000$

C$.$ Net cost of approximately R $13000$

D$.$ Net benefit of approximately R $7000$