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 5% from 14,000 to 14,700 units during the coming year; the average collection period is expected to increase from 45 to 65 days, and bad debts are expected to increase from 1% to 3% of sales. The sale price per unit is $43, and the variable cost per unit is $34. The firm's required return on equal-risk investments is 9.1%. 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 sRound to the nearest dollar.)