Score: 1 of 5 pts 3 of 4 (4 complete) HW Score: 58.1%, 12.2 of 21 pts %x P14-11 (similar to) Question Help Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount. The firm is considering offering a 4% cash discount for payment within 15 days. The firm's current average collection period is 60 days, sales are 40,000 units, selling price is $46 per unit, and variable cost per unit is $34. The firm expects that the change in credit terms will result in an increase in sales to 43,000 units, that 70% of the sales will take the discount, and that the average collection period will fall to 30 days. If the firm's required rate of return on equal-risk investments is 10%, should the proposed discount be offered? (Note: Assume a 365-day year.) The additional profit contribution from additional sales is $ 36000. (Round to the nearest dollar.) The amount of cost that will be saved due to the reduction in average A/R is $ (Round to the nearest dollar.)