Can you solve this question in detail please ?

1. Suppose that you are recently hired as credit manager of Turk Company and try to increase efficiency in credit policy. You found out that your company is selling on credit terms of net 50 days whereas industry-wide credit terms have recently been lowered to net 30 days. On annual credit sales of $3 million, Turk has DSO of 60 days. You estimate that by tigthening credit terms, sales will drop to $2.6 million, and company will have DSO of 35 days, which will offset the drop in sales. Variable cost ratio is 70%, interest on funds used 11% and tax rate is 40%. Should the change in credit terms be made