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XYZ Corporation is considering relaxing its present credit policy and is in the process of evaluating two proposed policies. Currently , the firm has annual credit sales of 50 lakhs and accounts receivable turnover ratio of 4 times a year. The current level of loss due to bad debts is * 1,50,000. The firm is required to give a return of 25% on the investment in new accounts receivables. The company's variable costs are 70% of the selling price. Given the following information, which is the better option? (Amount in ) Policy Policy Policy Option Option1 Annual credit sales 50,00,000 60,00,000 67,50,000 Accounts receivable turnover ratio 4 times 3 times 2.4 times Bad debt losses 1,50,000 3,00,000 4,50,000 Present