Question 5 Present plan Plan A Plan B credit term 2/10 n/30 2/10 n/45 2/10 n/60 increase in sales 596 79 total sales 36 ? ? profit margin before credit cost 2096 2096 2096 investment cost 12% change in receivable 12% change in receivable bad debts 1% of change in sales 2% of change in sales collection policy 50% amount will be received in 18 milllion will be received in 18 milllion will be received in discount period discount period discount period Compute the following 1. Profit margin before credit cost Plan A Plan B 2. amount of receivable Plan A A Plan B 3. Investment cost Plan A Plan B 4. Bad debts cost Plan A Plan B B 5. Credit cost Plan A Plan B 6. profit after credit cost Plan A Plan B B