Polymers ltd has just reviewed its credit policy and is of the view that the bad debt losses are mounting. Thus, the firm wishes to tighten its credit standards. It proposes to shorten the credit period from 45 days to 30 days. The result of this credit change is likely to reduce sales from Rs.6,00,000 to Rs.5,00,000. The bad debt losses are expected to reduce from 4% to 2% of the total sales. The collection expenses are also expected to reduce from 2% to 1% of the total sales. The firms variable cost ratio is 80% and it has a marginal tax rate of 40%. The post-tax cost of funds for the firm is 12%. Assuming all sales are on credit, should the firm introduce a change in credit standards?