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 decine from 35 to 25 days. Bad-debt expenses are expected to decrease from 15% to 1.1% of sales. The firm is currently selling 11 500 units but believes that as a result of the proposed change, sales will decline to 9.600 units. The sale price per unit is $55, and the variable cost per unit is $45. The film has a required return on equal-risk investments of 126% 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) Enter your answer in the answer box and then click Check Answer 4 parts Clear All Check Answer remaining