Umoja Company has annual sales of Tshs 120,000,000 and all sales are on 30 days' credit, although customers on average take ten days more than this to pay. Contribution represents 60% of sales and the company currently has no bad debts. Accounts receivable are financed by an overdraft at an annual interest rate of 7%. Umoja plans to offer an early settlement discount of 2% for payment within 15 days and to extend the maximum credit offered to 60 days. The discount is expected to be taken by 30% of customers, with the remaining customers taking an average of 60 days to pay. The company expects that these changes will increase annual credit sales by 10%. while also leading to additional incremental costs equal to 1% of turnover. Required: Assume a 360- day year, evaluate whether the proposed changes in credit policy will increase the profitability of Umoja Company. Advice the company on key factors to be considered when formulating working capital funding policy. (10 marks)