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A firm is considering whether it should lengthen its credit period. As a result of this change, the average collection period will increase from 30

A firm is considering whether it should lengthen its credit period. As a result of this change, the average collection period will increase from 30 to 60 days, and current sales of 50,000 units at $2 per unit and expected to increase by 20%. The variable cost is 50% of the selling price and total fixed costs are $100,000. The firm has a required rate of return is 10%. Using 365 days a year, what is the change in sales revenue (net of all costs)?

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