SHOW YOUR COMPLETE SOLUTION AND WRITE YOUR SOLUTION ON A PAPER. Problem 4: Simon Corporation is evaluating a relaxation of it's credit policy. At present. 70 percent of sales are on credit and there is a gross margin of 20 percunt, Additional data and; Current. Anticipated Sales P500.000 P630 000 Credit sales 410 000 620.000 Collection expenses 3% of credit sales 47 of credit sales Collection period 72 days. 90 days Required: Using 360 days in a year and assuming a cost of capital of 10 %, answer the following questions: What is the change in gross profit associated with the proposal? 2. What is the incremental change in collection expenses? Whats the change fi average accounts receivable: Should the company relax it's credit policy