On each nondelinquent sale Cast Iron receives revenues with a present value of $1,210 and incurs costs with a present value of $1,060. Assume there is no possibility of repeat orders and that the probability of successful collection from the customer is p = .96.
a-1.
What is the expected profit of granting credit? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Expected profit
$ per sale