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

Roxy International is considering easing credit standards to increase sales,and potentially profits.Currently the firm sells 2,000,000 units at a sales price of $7 per unit and variable cost of $5 per unit.Currently the average collection period is 35 days and the bad debt expense is 2% of sales.The required return on investment is 18%.If credit standards are eased,the sales will increase to 2,500,000 units; the ACP will increase to 65 days; and the bad debt expense will increase to 5% All else will remain the same.What is the cost associated with the increased investment in accounts receivable?

A) $ 172,602.74
B) $ 400,684.93
C) $3,150,000.00
D) $ 228,082.19