GT Ltd. is taking into account the revision of its credit policy with a view to increasing its sales and profit. Currently, all its sales are on one month credit. Other information is as follows: Contribution 2/5th of Sales Revenue Additional funds raising cost 20% per annum The marketing manager of the company has given the following options along with estimates for considerations: Particulars Sales Revenue (*) Credit period (in months) Current Position Option I Option II Option III 42,00,000 44,00,000 50,00,000 1 2 3 2 3 26,000 30,000 40,00,000 1 2 24,000 Bad debts (% of sales) Cost of Credit administration () You are required to ADVISE the company for the best option. 5 60,000 [10 Marks]