Accounts receivable changes with bad debts A firm is evaluating an accounts receivable change that would

increase bad debts from $2\%$ to $3\%$ of sales. Sales are currently $50,000$ units per month, the selling price is $$20$

per unit, and the variable cost per unit is $$15.$ As a result of the proposed change, sales are forecast to increase to

$80,000$ units per month. If the cost of capital is $0\mathrm{.}75\%$ per month, should the firm change its credit policy?

The cost of the marginal bad debts of the firm is $$28000.($Round to the nearest dollar.$)$

The profit contribution from an increase in sales is $$.($Round to the nearest dollar.$)$