As treasurer of the Universal Bed Corporation, Aristotle Procrustes is worried about his bad debt ratio, which is currently running at 6.4%. He believes that imposing a more stringent credit policy might reduce sales by 5% and reduce the bad debt ratio to 4.4%. Assume current sales are $100. a. If the cost of goods sold is 76% of the selling price, what is the expected profit on the current credit policy? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected profit b. If the cost of goods sold is 76% of the selling price, what is the expected profit on the more stringent credit policy? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected profit c. Should Mr. Procrustes adopt the more stringent policy? Yes No