(The following information applies to the next three problems.) Plans 4 U, Inc. expects to have sales this year of $25 million under its current credit policy. The present terms are net 30; the days sales outstanding (DSO) is 48 days; and the bad debt loss percentage is 6%. The company wants to improve its profitability, the treasurer has proposed that the credit period be shortened to 20 days . This change would reduce expected sales by $2,000,000, but it would also shorten the DSO on the remaining sales to 30 days. Expected bad debt losses on the remaining sales would fall to 4%. The variable cost percentage is 70%, and the cost of capital is 12%. (Assume a 360-day year.)