Forrester Fashions has monthly credit sales of 23,000 units with an average collection period of 65 days. The company has a per-unit variable cost of 25 and a per-unit sale price of 34. Bad debts currently are 4% 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 6% of sales, which would rise to 34,500 units per month. Forrester's cost of capital is 0.8% per month. Show all necessary calculations needed to evaluate Forrester's proposed relaxation of credit standards. (Note: Assume a 365-day year.)

Part 1 The additional profit contribution from an increase in sales is $___ (Round to the nearest dollar.)

Part 2 The cost from the increased marginal investment in A/R is $_____ (Round to the nearest dollar.)

Part 3 The cost from the increase in bad debts is $_____(Round to the nearest dollar.)

Part 4 The net profit or loss from implementing the proposed plan is $ _____(Round to the nearest dollar. Enter a negative number for a loss.)

Part 5 Is the proposed plan recommended? Yes or No

(If you could bold the answers that would be very helpful)