Pebbles and Stone Enterprise currently do not offer any cash discounts and sell credit only. In an attempt to increase sales, the board is considering offering a 3% discount for payment within 15 days. Currently, the average collection period is 45 days, sales are 40,000 units, selling price is $60 per unit, and variable cost per unit is $30. If the discount is implemented, it is expected that sales will increase to 46,000 units, that 50% of sales will take the discount, and the average collection period will fall to 30 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.

Select one:

a.

$100,652

b.

$142,052

c.

$138,600

d.

$173,121

e.

$135,148