Saxon Corporation sells a product for $$48$ with costs of $$33$ per unit. Saxon uses a $9\%$ rate of return for all its calculations. The CFO estimates that there is a $20\%$ probability of a prospective new customers seeking credit will go bankrupt within the next $6$ months. Customer wishes to place an order for $1,000$ units of the product.

Multiple Choice

Extend credit; total benefit of $$3,780$

Extend credit; total benefit of $$3,880$

Extend credit; total benefit of $$3,980$

Extend credit; total benefit of $$4,080$