The Cycle Shoppe has decided to offer credit to its customers

Subject: Business    / Finance
Question
The Cycle Shoppe has decided to offer credit to its customers during the spring selling season. Sales are expected to be 330 bicycles. The average cost to the shop of a bicycle is 300. The owner knows that only 93 percent of the customers will be able to make their payments. To identify the remaining 7 percent, she is considering subscribing to a credit agency. The initial charge for this service is 540, with an additional charge of 6 per individual report. What is the amount of the net savings from subscribing to the credit agency?