THE COMPANY: GESTION S.A., is a company whose activity is the commercialization of articles several, aimed at the flower sector. Your average sales revenue is in order of $ 7,000,000 annually. Statistically, the gross profit margin obtained in this type of business is 27%. Credit sales correspond to a quarter of its total sales. The condition current, for credit sales it is 1/10, n / 30. Of those who make purchases on credit, who take advantage of the discount for prompt payment represent 60% of total sales on credit. The average collection on credit sales is 40 days. As cover for possible unpaid credits, the company allocates 2% of sales to credit. In the company's budget, 3.5% of sales are allocated to credit to collection expenses. THE SITUATION: They are meeting, reviewing the situation of the company, Carlos Espinoza, General Manager and Fernando Tapia, Financial Manager, and despite the excellent results of the They are committed to increasing income. Fernando made an exhibition to Carlos, in which he concludes that you cannot increase revenue by increasing gross profit margin, so suggest how alternative increase sales. Carlos requests Ricardo Jcome, Commercial Manager, that until the next day, Prepare and present a project that meets the following expectations: Increase total sales by 20%; considering that, of the total sales, the 70% are cash, and that 75% of credit sales take advantage of the discount for I'll pay soon. THE PROPOSAL: After the deadline for presenting the result, the three meet again and Ricardo proposes the following:  That the credit condition is 2/10, n / 40.  That the average collection period of days reaches 60 days.  That 5% be assigned to collection expenses.  Allocate 4% of annual sales for bad loans. Carlos listened carefully and at the end, he directed his gaze to where he was Fernando, waiting for your comments. THE QUESTION: What will be Fernando's comment, is it financially convenient for the company accept the proposal to change their credit policies in this way, knowing that the market pay up to 12% on bank investments? Explain your calculations and support the reason for your comment as if you were Fernando.