Question Help * Relaxation of credit standards Lewis Enterprises is considering relaxing its credit standards to increase its curra ncrease by 20% from 10,000 to 12,000 units during the coming year, the average colection period is expected ndy sagging sales. As a result of the proposed relaxation, sales are axpected to to increase from 30 to 40 days: and bad debts are expected to increase from 2.5% to 5% of saas The sale price per unit S40, and the variable oost per unit s S32 The fr m's requred return on equainsk rvestments is 24 1% Evauate the proposed relaxation, and make a to the firm. Note: Assume a 365-day year.) The sdditional profit contribution from an increase in sales is (Round to the nearest dollar) Enter your answer in the answer box and then click Check Answer. Clear All