Forrester Fashions has monthly credit sales of 21,000 units with an average collection period of 64 days. The company has a per-unit variable cost of 23 and a per-unit sale price of 32. Bad debts currently are 5% of sales. The firm estimates that a proposed relaxation of credit standards would increase the average collection period to 89 days and would increase bad debts to 8% of sales, which would rise to 31,500 units per month. Forrester's cost of capital is 1.2% per month. Show all necessary calculations needed to evaluate Forrester's proposed relaxation of credit standards. (Note: Assume a 365-dav vear.) The additional profit contribution from an increase in sales is $. (Round to the nearest dollar.) The cost from the increased marginal investment in A/R is $. (Round to the nearest dollar.) The cost from the increase in bad debts is $. (Round to the nearest dollar.) The net profit or loss from implementing the proposed plan is $. (Round to the nearest dollar. Enter a negative number for a loss.) Is the proposed plan recommended? (Select from the drop-down menu.)