PLEASE ANSWER LAST $3$ SUBPARTS AS THE FIRST $3$ HAVE BEEN SOLVED :Mountain Home Systems, Inc. is a well$-$known and reputable supplier of integrated circuits to manufacturers of telecommunications devices. The firm is currently debating whether to change its credit policy. Terms are currently $\frac{2}{10},$ net $60$ and would be changed to $\frac{2}{10},$ net $30.$ Currently, $60\%$ of the customers on average pay at the end of the credit period $(60$ days$)$ and the remaining customers would pay in $10$ days to take advantage of the discount. Under the new policy, it is anticipated that customers will pay on average in $35$ days and $50\%$ of the customers will pay in $10$ days to take advantage of the discount.

All sales are credit sales and will remain so with the change of policy. Average annual sales of $$8,000,000$ a year are expected to fall to $$6,000,000.$ Bad debt losses will drop from $3\%$ of total sales to $2\%$ of total sales. Variable production costs will remain at $80\%.$ The opportunity cost of financing is $8\%.$ Click here to access Excel.

The change in contribution margin is:

$$4,000,000$

$($$$400,000)$

$$2,000,000$

$$1,600,000$

The change in bad debt is:

$$120,000$

$($$$250,000)$

$$240,000$

$($$$140,000)$

The change in discount expense is:

$$64,000)$

$($$$60,000)$

$$74,000)$

$$4,000$

A$/$R before the policy change is: $*923,260*876,712*543,629*897,326$

A$/$R after the policy change is: $*889,260*575,342*543,629*832,326$

The opportunity cost of A$/$R at $8\%$ is: O$$24,110*($$$24,110)*876,712*310,370$