Gardner Company current sales are 42,000 units, average collection period is 60 days and bad debts of 3%. The firm set a new credit policy that will result in a decrease of sales to 40,000 units, average collection period will fall to 45 days and bad debts will decrease to 1%. Selling price is $45 per unit and variable cost per unit is $27. The firm's required rate of return on equal-risk investment is 25%. (Using a 365-day year to calculate your answer). Evaluate the proposed plan, and make a recommendation to the firm. Show your solution.