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Que ting Mountain Home Systems Inc is a well-known and reputable supplier of glated to consolecommunication devices the fire is currently debating whether to change its cedit policy Terms are currently 2/10, net 60 and would be changed to nel cumentos of the customers are at the end of the credit benod 60 days and the manang customers would pay on 10 days to take advantage of the discount Under the new policy is amicipated that somers will be on average in 3 days and the customers will pay in 10 days to take advantage of the discount EGO All sales are credit sales and will remains with the change of Average anual sales of Soda Verant expected to fill ,000.00 Badget losses will drop from or hot sales to 2 of total sales. Variable production costs will leman at the opportunity cost of rinancing The change in contribution margin (5400,000) 54.000.000 $2.000.000 $1,600,000 The change in bad debt is $120.000 [5120,000) $240,000 (5120 000 The change in discount expense is $4000 (564000) (560,000) (54,000) The opportunity cost of AR is $24.110 32.000 876.712 $310,370 Next page Que ting Mountain Home Systems Inc is a well-known and reputable supplier of glated to consolecommunication devices the fire is currently debating whether to change its cedit policy Terms are currently 2/10, net 60 and would be changed to nel cumentos of the customers are at the end of the credit benod 60 days and the manang customers would pay on 10 days to take advantage of the discount Under the new policy is amicipated that somers will be on average in 3 days and the customers will pay in 10 days to take advantage of the discount EGO All sales are credit sales and will remains with the change of Average anual sales of Soda Verant expected to fill ,000.00 Badget losses will drop from or hot sales to 2 of total sales. Variable production costs will leman at the opportunity cost of rinancing The change in contribution margin (5400,000) 54.000.000 $2.000.000 $1,600,000 The change in bad debt is $120.000 [5120,000) $240,000 (5120 000 The change in discount expense is $4000 (564000) (560,000) (54,000) The opportunity cost of AR is $24.110 32.000 876.712 $310,370 Next page

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