A company is currently allowing its customers, 30 days of credit. Its present sales are Rs. 100 million. The firms cost of capital is 10% and the ratio of variable cost to sales is 0.80. The company is considering extending its credit period to 60 days.Such an extension will increase the sales of the firm by Rs 100 million. Bad debts on additional sales would be 8%. The tax rate is 30%. Assume 360 days in a year. Examine the effect of relaxing the credit policy on the profitability of the organization adopted