b) Gem CliLtd current credit terms are Net 30 days. This Company is contemplating to change the terms to 3/15, net 45 in order to push up sales. The proposed change if it succeeds will have the following implication. Sales will increase by 5,000,000 Sales which will take advantage of discount is estimated shs.800,000. The rest of the customers will pay after maximum credit period. The cost associated with the above sale is as follows: Bad debt losses are estimated to be 1% of additional sales. Administrative expenses are to be 4% of increased sales. Opportunity cost is estimated to be 10% of increased investment is receivable and production and selling cost will be 70% Required Advise the management whether the credit term is worthwhile. (10 marks)