Tara’s Textiles currently has credit sales of $30 million per month, an average collection period of 60 days, and bad debts equal to 3% of sales. Assume that the price of Tara’s products is $60 per unit and that the variable costs are $55 per unit. The firm is considering tightening up their credit policy, allowing customers 30 days rather than 60 to pay their bills. With a stricter credit policy in place, sales will fall by 10%, but the average collection period will drop to 30 days and the bad debts percentage will fall to 1%. Determine whether the company should make this change if their cost of capital is 1% per month.