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Kim Mitchell, the new credit manager of the Vinson Corporation, was alarmed to find that Vinson sells on credit terms of net 90 days while industry-wide credit terms have recently been lowered to net 30 days. On annual credit sales of $2.9 million, Vinson currently averages 111 days of sales in accounts receivable. Mitchell estimates that tightening the credit terms to 30 days would reduce annual sales to $2,150,000, but accounts receivable would drop to 38 days of sales and the savings on investment in them should more than overcome any loss in profit.Vinson’s variable cost ratio is 82%, and taxes are 45%. If the interest rate on funds invested in receivables is 20%, should the change in credit terms be made?What is the effect of credit policy change? Round your answer to two decimal places