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A firm is analysing a relaxation of credit standards that is expected to increase sales from 10,000 to 12,000 units. The average selling price per

A firm is analysing a relaxation of credit standards that is expected to increase sales from 10,000 to 12,000 units. The average selling price per unit is $100, the variable cost of sales per unit is $80, and the average cost per unit is $90. What is the additional profit contribution from sales if credit standards are relaxed?

Select one:

a. $180,000

b. $160,000

c. $20,000

d. $200,000

e. $40,000

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