Relaxation of credit standardsLewis Enterprises is considering relaxing its credit standards to increase its currently sagging sales. As a result of the proposedrelaxation, 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 30 to 50 days; and bad debts are expected to increase from 2.5% to 4% of sales. The sale price per unit is $ 37, and the variable cost per unit is $ 26 The firm's required return on equal-risk investments is 24.6%. Evaluate the proposed relaxation, and make a recommendation to the firm.(Note: Assume a 365-day year.)