Relaxation of credit standarde Lewis Enterprise is considering reason is credit standards to increase is currently going sales. As a result of the proposed relaxation, as we expected to increase by from 13.000 to 13,650 units during the coming year, the average collection period is expected to increase from 40 to 50 days and bad debts are expected to increase to 25% 10 45% of sales. The price per unit 539 and the variate cost per unit is 529 The firm's required return on equal risk investments is 10,6% Evaluate the proposed relaxation, and make a recommendation to the firm (Note: Asume a 5-day year) The additional profit contribution from an increase in sales is $ 11200. (Round to the nearest dollar.) The cost from the increased marginal investment in A/R is $ 2,897' (Round to the nearest dollar.) The cost from the increase in bad debts is $ 10,906) (Round to the nearest dollar) The net profit or loss from implementing the proposed plan is $ -2,603". (Round to the nearest dollar. Enter a negative number for a loss.) Is the proposed plan recommended? No (Select from the drop-down menu.)