P1 59 Accounts receivable changes with bad debts Clear Glass Company sells glass contain ers. It reported total sales of $1,.5 30,0130, with 60% of the sales on credit. It takes 60 days to collect accounts receivable. The selling prioe is $20 per container while the vari able cost is $15 per container. The board is currently investigating a change in the col lection of accounts receivable that is expected to result in a 20% increase in credit sales and a 10% increase in the average collection period. Bad debts will also increase, from 2% to 4% of sales. The rm's opportunity cost on its investment in accounts receivable is 12%. (Note: Use a 365day year.) a. Calculate bad debts in dollars for the current and proposed plans. '3. Calculate the cost of the marginal bad debts to Clear Glass lCompany. c. Would you recommend the proposed plan? Explain. d. Under what circumstances would the decision to implement the proposed plan change