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Need help with this problem Homework: Working Capital Management Assignment 0 Saved Microbiotics currently sells all of its frozen dinners cashon-delivery but believes it can

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Homework: Working Capital Management Assignment 0 Saved Microbiotics currently sells all of its frozen dinners cashon-delivery but believes it can increase sales by offering supermarkets 1 month of free credit The price per carton is $180, and the cost per carton is $105. The unit sales will increase from 1,130 canons to 1,190 per month if credit is granted. Assume all customers pay their bills and take full advantage of any credit period offered. a. If the irlterest rate is 1% per month, what will be the change in the rm's total monthly prots on a present value basis if credit is offered to all customers? [Do not round intermediate calculations. Round your answer to 2 decimal places.) Change in total montth prot I I b. If the interest rate is 1.5% per month, what will be the change in the firrn's total monthly profits on a present value basis if credit is offered to all customers? [Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) Change it total monthly prot I I c. Assume the interest rate is 1.5% per month but the rm can offer the credit only as a special deal to new customers, while existing customers will continue to pay cash on delivery. What will be the change in the rm's total monthly profits on a present value basis under these conditions? {Do not round intermediate calculations. Round your answer to 2 decimal places} Change it total montth prot

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