Forrester Fashions has monthly credit sales of 20,000 units with an average collection period of 60 days. The company has a per-unit variable cost of 24 and a per-unit sale price of 33. Bad debts currently are 4% of sales. The firm estimates that a proposed relaxation of credit standards would increase the average collection period to 83 days and would increase bad debts to 6.5% of sales, which would rise to 30,000 units per month. Forrester's cost of capital is 1.1% per month. Show all necessary calculations needed to evaluate Forrester's proposed relaxation of credit standards. (Note: Assume a 365-day year.)