Jomal Corporation expects to receive $2,300 along with costs of $1,800 on each non-delinquent sale on credit. The probability of collection is 85%. Determine whether credit should be extended.

A) Extend credit - net benefit of $155
B) Do not extend credit - net detriment of $155
C) Extend credit - net benefit of $80
D) Do not extend credit - net detriment of $80

Ans: A) Extend credit - net benefit of $155