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Homework: Homework 7 Question 3, P15-12 (simil... Part 1 of 5 HW Score: 0%, 0 of 30 points O Points: 0 of 4 Save Shortening the credit period A 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 51 to 42 days. Bad-debt expenses are expected to decrease from 1.4% to 1.1% of sales. The firm is currently selling 11,900 units but believes that as a result of the proposed change, sales will decline to 9,900 units. The sale price per unit is $56, and the variable cost per unit is $44. The firm has a required return on equal-risk investments of 12.2%. 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.)