Answer the questions from the information provided.

Answer the following questions from the information provided below:

Bennet Stores intends selling a stove on credit. The selling price of the stove is R6 000. The mark-up on the cost price is 50%. Credit terms of 2/10 net 60 were agreed upon. The cost of capital to Bennet Stores is 15%.

1. Calculate the profit that Bennet Stores would make if the account is settled within the discount period. 2. Should the customer fail to pay the amount due and the account is written off after 90 days, how much would be the loss to Bennet Stores? 3. If Umdloti Traders required rate of return on equal-risk investments is 18%, should the proposed increase in the discount offered (from 2% to 3%) be made? Show all calculations.