Emma International Is Considering Easing Credit Standards to Increase Sales,and

Emma International is considering easing credit standards to increase sales,and potentially profits.Currently the firm sells 500,000 units at a sales price of $22 per unit and variable cost of $13 per unit.Currently the average collection period is 25 days and the bad debt expense is 2% of sales.The required return on investment is 12%.If credit standards are eased,the sales will increase to 600,000 units; the ACP will increase to 35 days; and the bad debt expense will increase to 3% All else will remain the same.What is the profit (or loss) associated with easing credit standards?

A) $724,000.00
B) $511,671.23
C) $212,328.77
D) $687,671.23