3. The KK Company is in the volatile garment business. The firm has annual revenues of 250 million and operates with a 30% gross margin on sales. Bad debt losses average 3% of revenues. KK is contemplating easing its credit policy in an attempt to increase sales. The loosening would involve accepting a lower quality customer for credit sales. It is estimated that sales could be increased by $20 million a year in this manner. However, the collections department estimates that bad debt losses on the new business would run four times the normal level andsid that internal collection efforts would cost an additional 1 million and year. Is the policy change a good idea? DT o bisogno