I need this answer back within 10 hours if possible.

If a company is concerned about their bad debt ratio, which is running
at 6 percent, and they decide to incorporate a tighter credit policy
which might end up reducing sales by 5 percent, and reduce the bad
debt ratio to 4 percent. If the cost of goods sold for this company is
80 percent of the selling price, should they go ahead with the tighter
credit policy?

Besides the answer, where can I find other examples of this sort of thing?