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 10,000 to 11,000 units during the coming year; the average collection period is expected to increase from 40 to 60 days; and bad debts are expected to increase from 2.5% to 4.5% of sales. The sale price per unit is $40, and the variable cost per unit is $32. The firm's required return on equal-risk investments is 9.5%. 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 $ 8000. (Round to the nearest dollar.) The cost from the increased marginal investment in A/R is $ 2165.58 . (Round to the nearest dollar.) The cost from the increase in bad debts is $ 9800 . (Round to the nearest dollar.) The net profit or loss from implementing the proposed plan is $. (Round to the nearest dollar. Enter a negative number for a loss.)