Bell is an owner of a rattan product shop in Kuala Lumpur. He is trying to decide whether he should change his business accounts receivable policy that will result in a 30% increase in sales and a 20% increase in the average collection period. No change in bad debts is expected. Currently his business has credit sales of RM480 million per year and an average collection period of 50 days. The selling price of the company's product is RM75 per unit and its variable cost is RM70 per unit. The company's opportunity cost on its investment in accounts receivable is 14%.

Required:

Analyse whether the company should change its accounts receivable policy.