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Qkwitov 1 (15 Marks) A comovny with a 10 opportunity cost on account receivables is planning to give a discount credit term SakB/20 net 30

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Qkwitov 1 (15 Marks) A comovny with a 10 opportunity cost on account receivables is planning to give a discount credit term SakB/20 net 30 for early settiement of credit on account receivables. It is expected that 65% of customers wili take this discount. This discount will increase the sales by 8%6 and decrease the average collection period of account receivables from 45 days to 35 days. Current total cost is 5AR3,350,000 with the total fixed cost of SAR2, 000,000. The price is given as 5AR60.00 per unit and the current sale is 30,000 units. do and show all the necessary calculations to decide if the company should initiate the discount or not. (All colculations must be shown. Without calculations, no marks will be given)

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