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