1. Discuss at least two reasons why a firm might want to offer seasonal datings to its customers.
2. Describe the marginal costs and benefits associated with each of the following changes in a firm’s credit and collection policies:
a. Increasing the credit period from 7 to 30 days
b. Increasing the cash discount from 1 to 2 percent
c. Offering a seasonal dating credit plan
d. Increasing collection expenditures (and effort)