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3 . Bharat Ltd . decides to liberalise credit to increase its sales. The liberalised credit policy will bring additional sales of Rs . 3

3. Bharat Ltd. decides to liberalise credit to increase its sales. The liberalised credit policy will bring additional sales of Rs.3,00,000. The variable costs will be 60% of sales and there will be 10% risk for non-payment and 5% collection costs. Will the company benefit from the new credit policy?
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