1. Delta Company has current sales of *30 crore. To push up sales, the company is considering a more liberal credit policy. The current average collection period of the company is 25 days. If the collection period is extended, sales increase in the following manner. Increase in Increase in Sales Credit Policy Collection Period X 15 days Y 25 days Z 35 days in lakh) 12 27 47 The company is selling its product at 10 each. Average cost per unit at the current level is 8 and variable cost per unit *6. If the company required a return of 12 per cent on its investment, which credit policy is desirable? State your assumptions. (Assume a 360-day year).