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Cape May Products currently sells 130 units a month at a price of $200 a unit. The firm believes it can increase its sales by

Cape May Products currently sells 130 units a month at a price of $200 a unit. The firm believes it can increase its sales by an additional 30 units if it switches to a net 30 credit policy. The monthly interest rate is .5 percent and the variable cost per unit is $140. What is the incremental cash inflow from the proposed credit policy switch? SHOW ALL WORK

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$5,400 $3,933 $1,800 $8,600

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