Question: Hello, Im having problems figuring out how to get the correct answer, could you please help me? Caren's Canoes is considering relaxing its credit standards

Hello, Im having problems figuring out how to get the correct answer, could you please help me?

Caren's Canoes is considering relaxing its credit standards to encourage more sales. As a result, sales are expected to increase from $255,000 to $293,250. The average collection period is expected to increase from 30 days to 40 days.The firm's cost for investments in accounts receivable is 20 percent.

Question: What is thecostof the additional investment in accounts receivable (assume a 360-day year)?

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