Q#2( 08 )

Details	Present Plan	Plan A	Plan B
Credit term	2/10 n /30	2/10 n/ 40	2/10 n / 60
sales	75 millions	5%	7%
Amount received in discount period	25%	25%	25%
Investment cost	10 % of receivables	10 % of change in receivables	10 % of sales receivables
Profit rate	25 % of sales	25 % of sales	25 % of sales
Bad debts cost	2 % of sales	2 % of sales	2 % of sales
Cash Sales	10 millions	10 millions	10 millions

Should company change the credit term or not.

There is not other information