2. UBS Ltd is considering changing its credit policy. Current sales under the present policy are Tshs 2,400 million per annum. The company has made the following estimates: Present Policy Policy A Policy B Additional sales demand 25% 35% Average collection period 1 Month 2 Months 3 Months Bad debt risk (% of sales) 1% 3% 6% You are given the following additional information: The company's expected return on investment is 20% Variable costs are 70% of gross sales value There will be to increase in fixed costs from extra turnover There will be no increase in average stocks or creditors Required: Advise the company which is the preferable policy