ACME corporation sells 3,000 computer chips at a cost of $15 per chip for materials and labor. It takes the firm 40 days to convert raw materials into a chips. ACME allows its customers 33 days in which to pay for the chips, and the firm generally pays its suppliers in 30 days.

ACMEs management is trying to improve its production process and implements a new plan that decreases its inventory conversion period to 22 days, increases its daily production to 3,450 chips, and decreases the cost of each chip to $13.5. What will be its working capital financing requirement?

1,222,459

1,250,000

1,164,375

1,200,000

1,254,598