astion 14 yet wered ichniques for Man ked out of 00 Havana Enterprises is considering relaxing its credit standards to increase its currently sagging sales As a result of the proposed relaxation, sales are expected to increase by 30% from 25000 to 32,500 units during the coming year, the average collection period is expected to increase trom 36 to 72 days; and bad debts are expected to increase from 2% to 5% of sales. The sale price per unit is $70. and the variable cost per unit is $40. The firm's required return on equal-risk investments is 30%. Evaluate the proposed relaxation, and make a recommendation to the firm. (Note: Assume a 360-day year.) Flag question itory system is an Inve divides inventory into the lig order of importance as the dollar investment in includes those items w Typically, this group con ventory items but 80 per a. Can't decide b. The credit standards should be relaxed since the proposed plan results in a profit of $ 98,250.00 c. The credit standards should not be relaxed since the proposed plan results in a loss of $(11.558.22) d. The credit standards should be relaxed since the proposed plan results in a profit of 98,907.53 e. The credit standards should not be relaxed since the proposed plan repults in a loss of $(13,750.00) consists that a stment in inventory consists of a large numb atively small investment