Currently, Your Firm Sells 280 Units a Month at a Price

Multiple Choice

Currently, your firm sells 280 units a month at a price of $125 a unit. You think you can increase your sales by an additional 70 units if you switch to a net 30 credit policy. The monthly interest rate is.5 percent and your variable cost per unit is $80. What is the incremental cash inflow of the proposed credit policy switch?

A) $3,078
B) $3,150
C) $3,334
D) $3,450
E) $3,610