SMLE QUESTIDH 2 Sheep Shani: Farms Ltd is considering eatendjng the credit period offered to customers ow 30 to I50 days- It is expected that mstomers 1arill oontinue to pay onthe net date The company cmresrj.' gmerates $450,000 in credit sales per more with associated 1rarishle costs of $343,000- The change in credit terms is expected to increase credit sales to $510,000- Bad-debt expense is anticipated to increase from 1% to 1-5% as a result ofiengiening the credit period. The companfs required rate of return on equal-11's}: ins'eshnents is 2.0%- Reqrdred: a What additional prot contribution form sales 1sill he realised from tlie proposed change?l f anti-h] h- iiihatisthecostofthemargtnalinwstniaitinaoooimtsreceisahte? f anti-h] c it'hatistheccstofthemarginalhaddehts'? f Hen-h] d Do jar-u recrenmend the proposed change in credit ter.I:I:Ls'Er Why or will}: not? I anti-h] {Terric Question = marks]