METU is currently selling a product for $12/unit. Sales (all on credit) for last year were 75,000 units. The variable cost per unit is $7. The firm's total fixed costs are $110,000. METU is currently contemplating a relaxation of credit standards that is anticipated to increase sales by 6.5%. It is also anticipated that an average collection period (ACP) will increase from 30 to 45 days, and that bad debt expenses will increase from 1% of sales to 2% of sales. The opportunity cost of tying funds up in receivables is 15%. Given this information, should METU relax its credit standards?