The XYZ Company's existing sales are P1,800,000. It is currently extending a credit period ofn/30 its customers. The company is contemplating to increase it sales by P160,000by lengthening the existing credit period to n/45. The bad debt losses on additional sales are expected to be 5 percent. The variable cost ratio is 80% and the required rate of return is 15%. Should the company extend the credit period or not? Present your solution in a comprehensive manner.