Example of Relaxing the credit period Basket Wonders is considering changing its credit period from net 30 which has resulted in 12A/R turns per year) to net 60 which is expected to result in 6 A/R turns per year) The firm is currently producing a single product with variable costs of $20 and a selling price of $25 Additional annual credit sales of $250, 000 from new customers are forecasted in addition to the current $2 million in annual credit sales. 10-1110-11 Example of Relaxing the Credit Period Basket Wonders is considering changing its credit period from net 30 (which has resulted in 12 A/R turns per year) to net 60 (which is expected to result in 6 A/R turns per year). The firm is currently producing a single product with variable costs of $20 and a selling price of $25. Additional annual credit sales of $250,000 from new customers are forecasted, in addition to the current $2 million in annual credit sales