Task $2$

So far, the FX company has had sales at the level of USD $40,000,000$ a year, and has pursued the following customer crediting policy: crediting period of $30$ days, $1\%$ discount for early payment $($up to $10$ days$).$ Half of the customers paid within up to $10$ days, $40\%$ paid within $30$ days, and the remainder paid within $40$ days. Variable costs amount to $75\%$ of the value of the sales, while fixed costs amount to USD $1,500,000.$ The company is planning an increase in sales value up to USD $50,000,000$ in the new year, which the company's management believes can be achieved by extending the crediting period up to $40$ days and applying an early payment discount of $2\%($up to $15$ days$).$ It is assumed that $60\%$ of customers intend to take advantage of the discount. In contrast, the remainder would pay within up to $40$ days. The cost of capital financing business operations of the company is $15\%$ per annum.

Use the income statement method to evaluate the proposed changes to the customer crediting policy.