=+LG 4 P15–9 Accounts receivable changes with bad debts Germanos Group is evaluating an accounts receivable change that would increase bad debts from 5% to 10% of sales.

Sales are currently 100,000 units of batteries, the selling price €25 per unit, and the variable cost per unit is €15. As a result of the proposed change, sales are forecast to increase by 20,000 units.