Shortening the credit period A firm is contemplating shovtening its credit period from 35 to 25 days and believes that, as a result of this change, its average collection period will decine from 39 to 33 deys. Bad-debt expenses are expected to decrease from 1.6% to 1.17 of sales. The firm is currenty seling 12 . 500 units but beleves that as a resuit of the proposed change, sales wil decine to 10,600 unts. The sale price per unit is $57, and the variable cost per unit is 443. The firm has a required return on equal-risk irvestments of 12.5\%. Evaluate this decision, and make a recommendation to the firm. Wofe; Assume a 365 -day year.) The reduction in proft contribution from a decline in sales is $ (Round to the nearest dollar. Enter as a negative number.) The benefit from the reduced marginal investment in A/R is $ (Round to the nearest dollar.) The cost savings from the reduction in bad debts is 5 (Round to the nearest dollar.) The net profit or loss from implementing the proposed plan is $ (Round to the nearest dolias. Enter a negative number for a loss.) Is the proposed plan recommended? (Select from the drop-down menu.)