A firm currently makes only cash sales. It estimates that allowing trade credit on terms of net 30 would increase monthly sales from 500 to 600 units per month. The price per unit is $75 and the cost (in present value terms) is $60. The interest rate is 1 percent per month. Should the firm change its credit policy if 5 percent of all customers fail to pay their bills under the new policy? O Yes, profits will increase by $1,054 per month O Yes, profits will increase by $965 per month O No, profits will not change O No, profits will fall by $817 per month O No, profits will fall by $1,173 per month References eBook & Resources Multiple Choice Learning Objective: 22-05 Explain how to assess whether it makes sense to grant credit to customers