Apollo Data Systems is considering a promotional campaign that will increase annual credit sales by $600,000.

Apollo Data Systems is considering a promotional campaign that will increase annual credit sales by $600,000. The company will require investments in accounts receivable, inventory, and pant and equipment. The turnover for each is Accounts receivable………………………. 5xInventory ………………………………… 8xPlant and equipment …………………….. 2xAll $600,000 of the sales will be collectible. However, collection costs will be 3 Percent of sales, and production and selling costs will be 77 percent of sales.The cost to carry inventory will be 7 percent of plant and equipment. The tax rate is30 percent.Find:a.