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 42 to 32 days Bad-debt expenses are expected to decrease from 1.6% to 1.1% of sales. The firm is currently selling 12,500 units but believes that as a result of the proposed change, sales will decline to 10,400 units. The sale price per unit is $58, and the variable cost per unit is $45. The firm has a required return on equal-risk investments of 12.4%. Evaluate this decision, and make a recommendation to the firm. (Note: Assume a 365-day year.) (Round to the nearest dollar. Enter as The reduction in profit contribution from a decline in sales is S a negative number.)