Accounts receivable changes Tara's Textiles currently has credit sales of $30 million per month, an average collection period of 56 days, and bad debts equal to 4% of sales. Assume that the price of Tara's products is $57 per unit and that the variable costs are $51 per unit. The firm is considering tightening up their credit policy, allowing customers 35 days rather than 56 to pay their bills. With a stricter credit policy in place, sales will fall by 10%, but the average collection period will drop to 35 days and the bad debts percentage will fall to 1%. Determine whether the company should make this change if their cost of capital is 0.9% per month. (Note: Use a 365 -day year.) The cost from a decrease in sales is $ (Round to the nearest dollar.)