Alfred Industries Currently Sells for Cash Only

Alfred Industries currently sells for cash only. Under this policy, Alfred sells 200 units a month at a price of $29 each. The variable cost is $16 per unit. The company is considering changing to a net
30 credit policy in which case they expect sales to increase to 275 units a month while maintaining
The current market price. The required rate of return is 1.5% monthly. What is the present value of
The benefit derived from switching the credit policy?

A) $65,000
B) $78,000
C) $85,000
D) $130,000
E) $145,000