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Accounts receivable changes without bad debts Tara’s Textilescurrently has credit sales of $360 million per year and an averagecollection period of 60 days. Assume that the price of Tara’sproducts is $60 per unit and that the variable costs are $55 perunit. The firm is considering an accounts receivable change thatwill result in a 20% increase in sales and a 20% increase in theaverage col-lection period. No change in bad debts is expected. Thefirm’s equal-risk oppor-tunity cost on its investment in accountsreceivable is 14%. (Note: Use a 365-day year.) a. Calculate theadditional profit contribution from sales that the firm willrealize if it makes the proposed change. b. What marginalinvestment in accounts receivable will result? c. Calculate thecost of the marginal investment in accounts receivable. d. Shouldthe firm implement the proposed change? What other informationwould be helpful in your analysis?