Relaxation of credit standards Lewis Enterprises is considering relaxing its credit standards to increase its currently sagging sales. As a result of the proposed relaxation, sales are expected to increase by 10% from 12,000 to 13,200 units during the coming year; the average collection period is expected to increase from 40 to 55 days; and bad debts are expected to increase from 1% to 2.5% of sales. The sale price per unit is $36, and the variable cost per unit is $26. The firm's required return on equal-risk investments is 9.9%. Evaluate the proposed relaxation, and make a recommendation to the firm. (Note: Assume a 365-day year.) The additional profit contribution from an increase in sales is $ (Round to the nearest dollar.)