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During the month of March, Jolly Tar sells 10 units 2 points of a product for $200 each to SandyBeach. SandyBeach can claim a 5%

During the month of March, Jolly Tar sells 10 units 2 points of a product for $200 each to SandyBeach.

SandyBeach can claim a 5% prompt payment discount if the invoice is paid within 30 days.

SandyBeach has also been subject to bankruptcy rumours in the national press. Jolly Tar estimates that there is a 20% probability that SandyBeach will not pay for the goods.

What amount of revenue will be included in Jolly Tar's profit or loss in respect of this transaction?

O $0

$1,600

$1,900

O $2,000

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