Forrester Fashions has annual credit sales of 300 comma 000 units with an average collection period of 74days. The company has a per-unit variable cost of $ 18 and a per-unit sale price of $ 27.00Bad debts currently are 4.5 % of sales. The firm estimates that a proposed relaxation of credit standards would not affect its 74-day average collection period but would increase bad debts to 6.75 % of sales, which would increase to 360,000 units per year. Forrester requires a 10 % return on investments. Show all necessary calculations required to evaluate Forrester's proposed relaxation of credit standards.(Note: Assume a 365-day year.)