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 15% from 12,000 to 13,800 units during the coming year, the average collection period is expected to increase from 50 to 60 days, and bad debts are expected to increase from 1% to 2.5% of sales. The sale price per unit is $37, and the variable cost per unit is $27. The firm's required return on equal-risk investments is 10.4%. 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.)