Please answer question 2

heorth County Publishing Company has provided the tolowing data Annual credit sales: $ 10 million Average collection period: 60 days Terms: Net 30 Interest Rate: 10% North County publishing proposes to offer a discount policy of 2/ 10 net 30 It anticipates that 50% of its customers will take advantage of this new policy. As a result, the collection period will be reduced to 30 days. Should the North County publishing company offer the new credit terms? 2. The Tropeland Company has obtained the following information: Annual Credit sales: $ 30 million Collection period: 60 days Terms: Net 30 Interest Rate: 12% considering offering terms of 4/10 net30. It anticipates that 50% of its customers will take advantage of the discount. The collection period is expected to decrease by one month. Should the new credit policy be adopted? 3. Berkshire Sports Inc. operates a mail-order running-shoe business. Mana considering dropping its policy of no credit. The credit policy under consideration b Berkshire is as follows No Credit $35 $25 2000 Credit $40 $32 3000 5 Price per unit Cost per unit