How to solve

Relaxation of credit standards. Lewis Enterprises currently makes sales only in cash, but it is considering offering credit to customers to increase its currently sagging sales. As a result of the proposed relaxation, sales are expected to increase by about $10\%$ from $9,750$ to $10,725$ units during the coming year; the average collection period is expected to increase from $0$ to $30$ days, and bad debts are expected to increase from $0\%$ to $3\%$ of sales. The sale price per unit is $$40,$ and the variable cost per unit is $$29.$ The firm's required return is $1\%$ per month. Evaluate the proposal to offer credit, and make a recommendation to the firm. Hint: The problem gives us a monthly cost of capital, so let's express revenues, production costs, and profits on a monthly basis.

Under the current policy the firm produces and sells $9,750$ units each year $($no sales on credit$).$

The selling price is $$40,$ so the monthly revenue under the current plan is $ $($Round to the nearest cent.$)$