It turns out 1,500 units a day at a cost of 6 per unit for direct materials, direct labor and factory overhead. It takes the firm 22 days to convert raw materials into a battery. ABC allows its customers 40 days in which to pay for Product X, and the firm generally pays its suppliers in 30 days. By what amount could ABC reduce its working capital financial needs if it was able to stretch its payables deferral period to 35 days?

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