Accounts receivable changes with bad debts Afirmis evaluating counts receivable change that would increase bad debtstrom 2% of sales Sales are currently 30,000 units, the selling price is $20 per unit, and the valable cost per unit is $15. As a result of the proposed change, sales are forecast to increase to 60.000 units What are bad debts in dollars currently and under the proposed change? b. Calculate the cost of the marginal bad debts to the fim. c. Ignoring the additional profit contribution from increased sales, the proposed changesave $3.500 and causes ne change in the average investment in counts receivable, would you recommend d. Considering all changes in costs and benefits, would you recommend the proposed change? .. Compare and discuss your answers in parts and d. The current amount of bad debts indolers is Round to the nearest dolar) The fem's forecast amount of bad debts in dollars under the proposed plass Round to the newest dollar) b. The cost of the marginal bad debts of the firm ins Round to the newest dolar) e. gnoring the additional profit contribution from increased sales, the proposed change save $3.500 and causes no change in the average nvestment in accounts receivable, would you recommend it? since the cost of marginal bad debts is than the savings of $3,500. (Select from the drop-down menus) d. Considering all changes in costs and benefits, would you recommend the proposed change? since the cost of marginal bad debts is than the total wings of $153.500. (Select from the drop-down menus) .. Compare and discuss your answers in parts and d. Which of the following statements is true? (Select the best answer below) O A. You should recommend this policy change because it increases sales OB. You should recommend this policy change because the savings that include additional profit from incremental sales are greater than the cost of the marginal bad debts. O c. You should recommend this policy change because the total savings are then the cost of the marginal bad debts. OD. You should recommend this policy change because the savings that exclude additional proft from increased sales are greater than the cost of the marginal bad debts. Click to select your answers