4. Change in credit policy. Black Eye Peas Corporation, which has idle capacity, provides the following data: Selling price per unit P80 Variable cost per unit P50 Fixed cost per unit P10 Annual credit sales 300,000 units Collection period 60 days Rate of return 16% Bad debts losses 1% Tax rate 40% Black Eyes Peas is considering a change in credit policy that would relax its credit standards. The followi information applies to the proposal: a. Sales will increase by 20%. b. Collection period will increase to 90 days. C. Bad debts losses will increase to 2% of sales. d. Collections costs are expected to increase by P200,000. e. The company uses the 360-day year factor. Required: Should the company change its credit policy? 4. Change in credit policy. Black Eye Peas Corporation, which has idle capacity, provides the following data: Selling price per unit P80 Variable cost per unit P50 Fixed cost per unit P10 Annual credit sales 300,000 units Collection period 60 days Rate of return 16% Bad debts losses 1% Tax rate 40% Black Eyes Peas is considering a change in credit policy that would relax its credit standards. The followi information applies to the proposal: a. Sales will increase by 20%. b. Collection period will increase to 90 days. C. Bad debts losses will increase to 2% of sales. d. Collections costs are expected to increase by P200,000. e. The company uses the 360-day year factor. Required: Should the company change its credit policy