Read the details given below to answer the question 11 and 12 (Marks 2,5 x2 = 5) Riaz rice company is considering the present credit standard policy (resulting in sales of $4.4 million) together with two, increasingly more liberal, new ones. These alternative policies are expected to produce the following results: PRESENT POLICY POLICY A POLICY 33 Demand (credit sales) $4,400,000 $60,000,000 $7,000,000 Incremental sales $ 1,600,000 $1,000,000 Default losses Original sales 2% Incremental sales 12% 18% Average collection period Original sales / month Incremental sales 2 months 3 months The prices of its products average $25 per unit, and variable costs average $20 per unit. 11.If the company has a pre-tax opportunity cost of funds of 15 percent, which credit policy should be pursued? (Assume a 360-day year.) 12. What were the basis of your decision in Q. Il above please explain