The Marketing Manager of Top Toys LId has been looking Into ways to Increase sales. He is proposing that the company offer more attractive credit terms of 3/10 net 60. The positlve eflect of these new credilt terms would be a projected increase in sales to $4.2 million with 60% of customers taking the discount. The negative effect would be an increase in the average collecllon perlod to 35 days and an increase in bad debis to 2.5% of sales. It is expected that the company's contribution margin of 5.5% would hold wilh the expanslon of sales, as would its short-term financing cost of 6%. Currently, Top loys Lid.'s credit terms are 2/10, net 30. The average collectlon perlod is 20 days, with 80% of sales currently taking the discount. If the current credit terms are continued, nexl year's sales are projected to be $3.1million. All sales are on credit, and bad debts are expected to be 1.5% of credit sales. Required: Advise lop Toys LId. whether or not II should change Its credil policy as recommended by Its Marketing Manager. Show all calculations (16 marks)