Corporate Finance 571 / Question #2

Must be cited, referenced and minimum of 250 words..

Question:

Optical Supply Company offers credit terms of 2/10, net 60. If Optical Supply is considering a change in its credit terms to one of those indicated below, explain whether each change would increase or decrease sales.

(a)  2/10, net 30; (b) net 60; (c) 3/15, net 60; (d) 2/10, net 30, 30 extra.