Working Capital

Hello John,

W Co has a annual credit sales of $ 4,500,000 and on average customers take 60 days to pay,
assuming a 360 a year. As a result , W Co has a trade receivables balances of $ 750,000. The company relies on overdraft to finance this at an annual interest rate of 10%.
W Co is offering an early settlement discount of 1% for payment in 30 days.It expected that 25% of its customers( representing 35% of the annual credit sales) will pay in 30 days in order to obtain the discount.

What is the net impact?

1. The answer is $2,625.
2. In the answer, 35% has been used and not 25%
3. Could you explain why?

Thanks