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A firm is contemplating shortening its credit period from 30 to 20 days and believes? that, as a result of this? change, its average collection

A firm is contemplating shortening its credit period from 30 to 20 days and believes? that, as a result of this? change, its average collection period will decline from 37 to 26 days. ? Bad-debt expenses are expected to decrease from 1.5% to 1.1% of sales. The firm is currently selling 11,900 units but believes that as a result of the proposed? change, sales will decline to 10,000 units. The sale price per unit is $54?, and the variable cost per unit is $44. The firm has a required return on? equal-risk investments of 25.2%. Evaluate this? decision, and make a recommendation to the firm.???(Note?: Assume a? 365-day year.)

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