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 20% from 12,000 to 14,400 units during the coming year, the average collection period is expected to increase from 35 to 55 days; and bad debts are expected to increase from 1% to 2.5% of sales. The sale price per unit is $38, and the variable cost per unit is $28. The firm's required return on equal-risk investments is 10.7%. 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.)