Juno, Inc Sells 50 Units a Month at a Price of of $1,250

Juno, Inc. sells 50 units a month at a price of $1,250 under a cash only credit policy. If the firm implements a net 30-day policy, sales are expected to increase by 10%. The variable cost per unit is
$750 and the monthly required rate of return is 2%. What is the cost of switching credit policies?

A) $58,750
B) $62,500
C) $63,375
D) $65,500
E) $66,250