B.Red Delima Sdn Bhd (RDSB) sells their product at a price of RM90 per unit and the average variable cost for the product is RM50 per unit. Currently, the company sells the product on credit term and the average credit sales is 90,000 units per year, with bad debts expenses of 1.5%. The management of RDSB is planning to reconsider to increase its average collection period in the future, which will increase its sales by 9,000 units. Uncollectible debts are expected to rise by 3% and the opportunity cost of funds invested in accounts receivable is 10%. Assume a 360-day in a year.

Required:

Evaluate whether the company should execute the planning of its management