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 11,000 to 12,650 units during the coming year; the average collection period is expected to increase from 35 to 50 days; and bad debts are expected to increase from 1.5% to 3% of sales. The sale price per unit is $35, and the variable cost per unit is $27. The firm's required retum on equal-risk investments is 11%. 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.)