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Microbiotics currently sells all of its frozen dinners cash$-$on$-$delivery but believes it can increase sales by offering supermarkets $1$ month

of free credit. The price per carton is $$90,$ and the cost per carton is $$60.$ The unit sales will increase from $1,040$ cartons to $1,100$ per

month if credit is granted. Assume all customers pay their bills and take full advantage of any credit period offered.

a$.$ If the interest rate is $1\%$ per month, what will be the change in the firm's total monthly profits on a present value basis if credit is

offered to all customers?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

b$.$ If the interest rate is $1\mathrm{.}5\%$ per month, what will be the change in the firm's total monthly profits on a present value basis if credit is

offered to all customers?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places. Negative amount should be indicated

by a minus sign.

c$.$ Assume the interest rate is $1\mathrm{.}5\%$ per month but the firm can offer the credit only as a special deal to new customers, while

existing customers will continue to pay cash on delivery. What will be the change in the firm's total monthly profits on a present

value basis under these conditions?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

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