factors questions

hello sir, can you please tell me what to do with the bad debts in this question? what i wanted to know is that should we take into account the fall in bad debts when when we are dealing with non-recourse factoring such as in this question?

Ken Ltd has received an offer from a factor to manage its trade receivables in a servicing
and factor financing agreement.
It is expected that the factor will reduce the average trade receivables period of Coco Ltd to
35 days; to reduce bad debts from 1.9% of turnover to 0.85% of turnover; and to enable Ken
Ltd in making a savings of $175,000 per year in administration costs.
The factor would make an advance of 85% of the revised book value of trade receivables to
Ken Ltd and it would charge 10%. A fee of 0.9% of turnover on a with-recourse basis or a
fee of 1.5% of turnover on a non-recourse basis would be charged by the factor.
Ken Ltd currently pays 7.5% on its overdraft facilities. Assume that there are 365 working
days in each year and that all sales and purchases are on credit.
Calculate the value of the factor’s offer on a non-recourse basis. Turnover $116790000, Current Receivable-21000000