Accounts receivable changes Tara's Textiles currently has credit sales of $21 million per month, an average collection period of 61 days, and bad debts equal to 3.5% of sales. Assume that the price of Tara's products is $52 per unit and that the variable costs are $47 per unit. The firm is considering tightening up their credit policy, allowing customers 34 days rather than 61 to pay their bills. With a stricter credit policy in place, sales will fall by 10%, but the average collection period will drop to 34 days and the bad debts percentage will fall to 1%. Determine whether the company should make this change if their cost of capital is 1.2% per month. (Note: Use a 365-day year.) The cost from a decrease in sales is $ *** (Round to the nearest dollar.) The additional profit from the decreased marginal investment in A/R is $ The additional profit from the decrease in bad debts is $ (Round to the nearest dollar.) . (Round to the nearest dollar.) The net profit or loss from implementing the proposed plan is $ number for a loss.) Is the proposed plan recommended? (Round to the nearest dollar. Enter a negative (Select from the drop-down menu.)