Shortening the credit periodA 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 42 days. Bad-debt expenses are expected to decrease from 1.6% to 0.9% of sales. The firm is currently selling 11,700 units but believes that as a result of the proposed change, sales will decline to 9,600 units. The sale price per unit is $56, and the variable cost per unit is $46. The firm has a required return on equal-risk investments of 12.1%. 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.)