PLEASE HELP! I WILL LIKE ANSWER! Firm X has sales of $5,300,000; $3,100,000 are for cash, but two customers who generate sales of $2,200,000 pay after 30 days. Management believes that sales will increase by 15 percent if all customers have 30 days to pay.

1. The cost of the additional goods sold is 72 percent of sales.
2. Credit checks and collection costs will be $6,700.
3. Three percent of the new sales will be uncollectible.
4. The cost of borrowing the funds to carry the receivables is 12 percent.

Should the firm change its credit policy given the following information? Round your answers to the nearest dollar.

The change in credit policy

-Select- v be made because additional costs are $

and are

-Select v than the additional sales of $

Firm X has sales of $5,300,000;$3,100,000 are for cash, but two customers who generate sales of $2,200,000 pay after 30 days. Management believes that sales will increase by 15 percent if all customers have 30 days to pay. a. The cost of the additional goods sold is 72 percent of sales. b. Credit checks and collection costs will be $6,700. c. Three percent of the new sales will be uncollectible. d. The cost of borrowing the funds to carry the receivables is 12 percent. Should the firm change its credit policy given the following information? Round your answers to the nearest dollar. The change in credit policy be made because additional costs are $ and are than the additional sales of $