Homework: HMSQ 4.3 Save Score: 0.4 of 2 pts 5 of 7 (6 complete) HW Score: 74.29%, 10.4 of 14 pts W P14-12 (similar to) s Question Help Shortening the credit period A firm is contemplating shortening its credit period from 45 to 35 days and believes that, as a result of this change, its average collection period will decline from 49 to 40 days. Bad-debt expenses are expected to decrease from 1.4% to 0.9% of sales. The firm is currently selling 12,300 units but believes that as a result of the proposed change, sales will decline to 10,400 units. The sale price per unit is $57, and the variable cost per unit is $47. The firm has a required return on equal-risk investments of 11.8%. 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 - 19000. (Round to the nearest dollar. Enter as a negative number.) The benefit from the reduced marginal investment in A/R is $ (Round to the nearest dollar.)