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 profit (or loss) associated with easing credit standards?

A) $176,917.81
B) $405,000.00
C) - $418,082.19
D) $823,082.19