Phoenix plc sells 3500 products for 55 each. Sales are made for cash, rather than on credit terms. Phoenix allows a customer to return any unused product within 30 days and receive a full refund. The cost of each product is 10. Based on prior experience and managers best prediction, Phoenix estimates that 55 products will be returned. Phoenix estimates that the costs of recovering the products will be immaterial and expects that the returned products can be resold at a profit.