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Management thinks that increasing the average collection period from 30 days to 60 days will result in an increase is sales revenue from $3.285 million

Management thinks that increasing the average collection period from 30 days to 60 days will result in an increase is sales revenue from $3.285 million to $3.65 million. Calculate the resulting increase in profit, given a contribution margin ratio of 20% and cost of capital of 10%

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