Please find the below attached question and give the answer properly.

7. The firm is contemplating stricter collection policies. At present, the firm is selling 36000 units on credit at a price of Rs. 32 each, the variable cost per unit is Rs. 25 while the average cost per unit is Rs, 29, average collection period is 58 days, collection expenses amounted to Rs 10000 and bad debts are 3 per cent. If the collection procedures are tightened, additional collection charges amounting to Rs. 20000 would be required, bad debts will be 1 per cent, the collection period will be 40 days, sales volume is likely to decline by 500 units. Assume a 20 per cent rate of return on investment, what would be your recommendation of implementing the decision