Question: 3. Answer the following questions based on the information below Current credit policy(n/a) Proposed credit policy (net 30) Price (RO) 10 12 Variable cost per

3. Answer the following questions based on the information below Current credit policy(n/a) Proposed credit policy (net 30) Price (RO) 10 12 Variable cost per unit (RO) 4 5 Quantity 100,000 150,000 Monthly rate 2% a. What is the incremental cash flows from switching credit policies? (2 pts) b. What is the cost of switching? pts) (2 (2 What is your recommendation? pts)

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