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can you answer question from 1,2,and 3 Shortening the credit period. Afirm is conlemplating shoriening its credif period from 40 to 30 days and believes

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Shortening the credit period. Afirm is conlemplating shoriening its credif period from 40 to 30 days and believes that, as a result of this change, its averago collection pertod will dedine from 46 to 36 daye Bad-debt expensen are expectad to decrease from 1.5% to 0.9% of sales The firm ls currently selling 12,100 units but believes that as a result of the proposed change, sales will decline to 10, 100 units. The sale price per unit is $55, and the variable cost per unit is $45. The firm has a required retum on equal-risk investments of 12.4%. Evaluate this decision, and make a recommendation to the firm. (Note Assume a 365 -day year) The reduction in profit contribution from a decline in sales is s (Round to the nearest dollar. Enter as a nogative number.) (Round to the nearent dollis) The cost savings from the reduction in bad debts is? (Round to the nearestdollar) Thes net procit or tos ftomt lmplithenting the proposed plan is 8 (Round to the noarest dollat Enter a negative number for a loss) Is the propered plan iecormmended? (Soloct from the diop-downmenu.)

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