June Company's average daily sales is P6,400,000, 10% of which is cash sales. The variable cost ratio is 60%. The company plans to relax its credit standards. It is expected to cause the following changes:

• Total credit sales will increase by 20%
• The collection period for incremental sales is 60 days. ( the payment behavior of existing customers will not change.)
• The variable cost ratio, even for the incremental sales will be the same as in the past. The cost of borrowing is estimated at 25% per year. The company uses 360 days in a year in all its computations.

What is the expected benefit (loss) from the panned relaxation in credit policy?