rk 7 K Question 3, P15-12 (similar to) Part 1 of 5 HW Score: 60.31%, 4.83 of 8 points O Points: 0 of 1 Save Shortening the credit period A firm is contemplating shortening its credit period from 30 to 20 days and believes that, as a result of this change, its average collection period will decline from 34 to 27 days. Bad-debt expenses are expected to decrease from 1.7% to 1.1% of sales. The firm is currently selling 11,600 units but believes that as a result of the proposed change, sales will decline to 9,600 units. The sale price per unit is $57, and the variable cost per unit is $44. 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 $ (Round to the nearest dollar. Enter as a negative number) Partial Credit: 1