Monarchs Enterprise currently do not offer any cash discounts and sell on credit only. In an attempt to increase sales, the board is considering offering a 10% discount for payment within 7 days. Currently, the average collection period is 30 days, sales are 30,000 units, selling price is $50 per unit, and variable cost per unit is $25. If the discount is implemented, it is expected that sales will increase to 36,000 units, that 90% of sales will take the discount, and the average collection period will fall to 10 days. The firm's required rate of return is 10%. What is the net benefit/loss from implementing the proposed plan? Note, assume a 365-day year.

a.

-$8,301

b.

$24,986

c.

-$26,301

d.

-$15,699

e.

-$12,000