Super sports Co. dealing in sports goods, have an annual sale of Rs 50,00,000 and is currently extending 30 days credit to the dealers. It is felt that sales can pick up considerably if the dealers are willing to carry increased stock, but he dealers have difficulty in financing their inventory. Super Sports Co. is there-fore considering a shift in credit policy. The following information is available: he average collection period now is 30 days. Variable cost is 80% of sales and fixed cost Rs 6 lakhs per annu m. The required pre-tax return on investment is 20%. verage collection innual Sales (Rs period in Lacs) . 5 days Determine which policy should be adopted by the company