1. ABC Supply is looking at relaxing their credit standards. Using the information below, calculate whether they should relax standards. Current bad debt is 1.5% of sales. Proposed new bad debt would be 2.5% of sales. Show your work progression. Reference Dodd Tool example from lecture. Sales price/unit $20 Sales units current 40,000 ACP old Sales units new 42,000 32 VC 12 ACP new Opport. Cost 0.12 45