FF has an annual credit sales of $250,000 units with an average collection period of 70 days. The company has a per unit variable cost of $20 and a per unit sale price of $30. Bad debts currently are 5% of sales. The firm estimates that a proposed relaxation of credit would not affect its 70 day average collection period but would increase bad debts to 7.5% of sales, which would increase to $300,000 units per year. FF requires a 12% return on investments. Show all calculations required to evaluate FF's proposed relation of credit standards.

Question

FF has an annual credit sales of $250,000 units with an average collection period of 70 days. The company has a per unit variable cost of $20 and a per unit sale price of $30. Bad debts currently are 5% of sales. The firm estimates that a proposed relaxation of credit would not affect its 70 day average collection period but would increase bad debts to 7.5% of sales, which would increase to $300,000 units per year. FF requires a 12% return on investments. Show all calculations required to evaluate FF's proposed relation of credit standards. 
I cannot find how to calculate and what is needed or required