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P15-11 (book/static) itiating a cash discount Gardner Con any currently makes all sales on creat and otters no cash dscount. The firm s onsidering amering
P15-11 (book/static) itiating a cash discount Gardner Con any currently makes all sales on creat and otters no cash dscount. The firm s onsidering amering a % cash discount for payment within 15 days. The irm's currant average colection petiod is 60 days, sales are 40,000 units, selling price is 545 per unit, and variable cost per unit is $36. The firm expects that the change in credit terms will result in an increase in sales to 42,000 units, that 70% of the sales will take the d investments is 25%, should the proposed discount be ottered? [Note: Assume a 365-day year.) iscount and that the average collect on period will fall to 30 days. Ir the firm's requred rate of return on equal-risk The addional profit contribution from additional sales is (Round to the nearest doilar ) Clear Al remaining
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