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firm is anticipating an increase in annual sales relaxing its credit policy from ' 2 / 1 0 , net 3 0 ' to '

firm is anticipating an increase in annual sales relaxing its credit policy from '2/10, net 30' to '3/15, net 30'. The selling price and variable cost per unit are rs 60 and rs 40. The firm has fixed cost of rs 20 lakhs. Relaxation in the credit policy is expected to increase the discount sales from 20% to 40%. Assuming zero bad debt, analyze the impact of the proposed credit policy. Assume 360 days in a year and ignore corporate tax

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