= Homework: Chapter 14 Homework Question 7, P14-12 (simi... Part 1 of 5 HW Score: 10%, 1 of 10 points O Points: 0 of 1 0 Save Shortening the credit period A fimm 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 49 to 42 days. Bad-debt expenses are expected to decrease from 1.5% to 1.1% of sales. The firm is currently selling 11,800 units but believes that as a result of the proposed change, sales will decline to 9,700 units. The sale price per unit is $58, and the variable cost per unit is $44. The firm has a required return on equal-risk investments of 24.6%. Evaluate this decision, and make a recommendation to the fimm. (Note: Assume a 365-day year.) The reduction in profit contribution from a dedine in sales is $7 (Round to the nearest dollar. Enter as a negative number.)