Can you please explain from where we got 9,700 ? i tried to solve it but i didn't get it

13) Travel and Tow Trailers Inc. makes small trailers for light-duty towing behind SUVs and small pickup trucks. Its trailers typically sell for $2,500. Many of its customers have asked for credit terms to aid in purchasing the trailers. The firm's finance department has estimated the following profile for its light-duty trailers and customer base: Annual sales: 10,000 trailers Annual production costs per trailer: $1,500 Lost sales if credit is not provided for customers: 2,000 trailers Default rate if all customers purchase on credit: 3.00% What is the profit if the firm has a credit policy? A) $25,000,000 B) $9,250,000 C) $450,000 D) $8,000,000 Answer: B Comment: Trailers sold * (Price - Cost) - Bad Debt = 9,700 ($2,500 - $1,500) - bad debt = $9,700,000 - (0.03 * 10,000) $1,500 = $9,250,000. Diff: 2 Topic: 13.2 Managing Accounts Receivable and Setting Credit Policy AACSB: 3 Analytic Skills