Score: 0 of 2 pts 23 of 25 (10 complete) HW Score: 36.33%, 18.16 of 50 pts P14-12 (similar to) 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 52 to 40 days. Bad-debt expenses are expected to decrease from 1.5% to 1.1% of sales. The firm is currently selling 12,000 units but believes that as a result of the proposed change, sales will decline to 10,100 units. The sale price per unit is $58, and the variable cost per unit is $46. The firm has a required return on equal-risk investments of 12.9%. 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.) Score: 0 of 2 pts 23 of 25 (10 complete) HW Score: 36.33%, 18.16 of 50 pts P14-12 (similar to) 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 52 to 40 days. Bad-debt expenses are expected to decrease from 1.5% to 1.1% of sales. The firm is currently selling 12,000 units but believes that as a result of the proposed change, sales will decline to 10,100 units. The sale price per unit is $58, and the variable cost per unit is $46. The firm has a required return on equal-risk investments of 12.9%. 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.)