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please do all 3 parts remaining x P15-12 (similar to) Shortening the credit period A firm is contemplating shortening its credit period from 35 to

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x P15-12 (similar to) Shortening the credit period A firm is contemplating shortening its credit period from 35 to 25 days and believes that, as a result of this change, its average collection period will decline from 39 to 31 days. Bad-debt expenses are expected to decrease from 1.5% to 1.1% of sales. The firm is currently selling 11,900 units but believes that as a result of the proposed change, sales will decline to 9,800 units. The sale price per unit is $57, and the variable cost per unit is S45. The firm has a required return on equal-risk investments of 11.6%. 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 $ 25200. (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.) Enter your answer in the answer box and then click Check Answer. 3 parts remaining Clear All Check

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