Sally Stillwagon owns a hardware store; she sells items for cash and on account. During 2009, which seemed to be a typical year, some of her company's operating data and other data were as follows: Sales: For cash $1,200,000 On credit 2,200,000 Cost of obtaining credit reports on customers 3,600 Cost incurred in paying a part-time bookkeeper to keep the accounts receivable subsidiary ledger up to date 12,000 Cost associated with preparing and mailing invoices to customers and other collection activities 18,000 Uncollectible accounts expense 45,000 Average outstanding accounts receivable balance (on which Stillwagon estimates she could have earned 10 per cent if it had been invested in other assets) 180,000 A national credit card agency has tried to convince Stillwagon that instead of carrying her own accounts receivable, she should accept only the agency's credit card for sales on credit. The agency would pay her two days after she submits sales charges, deducting 6 per cent from the amount and paying her 94 per cent. a. Using the data given, prepare an analysis showing whether or not Stillwagon would benefit from switching to the credit card method of selling on credit. b. What other factors should she take into consideration?