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The following information regarding a change in credit policy was assembled by the Wilson Company. The company has a required rate of return of 10%

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The following information regarding a change in credit policy was assembled by the Wilson Company. The company has a required rate of return of 10% and a variable cost ratio of 60%. Old Credit Policy New Credit Policy Sales P3,600,000 P3,960,000 Average DSO 30 days 36 days The pretax cost of carrying the additional investment in receivables, using a 360-day year would be a. P 5,760 C. P 8, 160 b. P 9,600 d. P 960

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