Ruby Ltd has current sales of 6 lakhs per annum. To push up sales. Ruby is considering a more liberal credit policy as one of the strategies. The current average collection period is 30 days. The proposals are as follows:

Policy	Increase in collection period	Increase in sales	Default rate
A	15 days	25000	0.5%
B	30 days	60000	1%
C	40 days	70000	2%

Ruby is selling its products at Rs. 10 each. Average cost per unit at current evel is Rs. 8 and variable cost per unit is Rs. 6. If the required rate of return for Ruby is 20% on its investment, which credit policy would you recommend and why? Assume 360 days in a year.