answer all parts showing work use 4decimals to calculate and 2 decimals to show answer

QUESTION 3 Use 4 decimal places to calculate a-c and present your answers with 2 decimal places XYZ Inc. is considering shortening its credit period from 45 days to 30 days and believes, as a result of this change, its average collection period will decrease from 50 days to 35 days. Bad debt expenses are also expected to decrease from 1.8 percent to 1 percent of sales. The firm is currently selling 600,000 units but believes as a result of the change, sales will decline to 450,000 units. On 600,000 units, sales revenue is $9,000,000, variable costs total $6,000,000, and fixed costs are $500,000. The firm has a required return on similar- risk investments of 12 percent a. What is the difference of the cost of marginal investment in A/R between the current and the proposed policies? b. What is the difference of the cost of the bad debt between the current and the proposed policies? c. What is the net loss/gain from the proposed plan? d. What is your recommendation to the firm