Question: Crazy.com(CC) must decide whether changing its credit policy from net 30 to 3/10 net 30 would be beneficial. The cash discount should increase sales from

Crazy.com(CC) must decide whether changing its credit policy from net 30 to 3/10 net 30 would be beneficial. The cash discount should increase sales from 2,000 to 2,100 units per year, and 60 percent of CC's customers will like take the discount. The bad debt percentage will not be altered. CC sells each unit for $2,700, with a variable cost per unit of $2,390. CC has calculated the cost savings from reduced investment in accounts receivable from the proposed discount to be $69,320. Should CC offer discount?

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