Evaluating Credit Policy $[$LO$2]$ Bismark Co$.$ is in the process of considering

a change in its terms of sale. The current policy is cash only; the new policy will

involve one period's credit. Sales are $25,000$ units per period at a price of $$350$

per unit. If credit is offered, the new price will be $$368.$ Unit sales are not

expected to change, and all customers are expected to take the credit. Bismark

estimates that $3$ percent of credit sales will be uncollectible. If the required

return is $2\mathrm{.}5$ percent per period, is the change a good idea?