$$400,000$ of sales to new customers would be generated this year. However, because you need to

expedite these sales, you would be unable to perform the normal credit checks for these

customers. You believe that $10\%$ of these sales might ultimately be uncollectible, resulting in

$$40,000$ of bad debt expense next year.

$$ $$800,000$ of sales that would have occurred anyway this year will be discounted by $10\%,$ thereby

yielding only $$720,000$ in revenue.

$$ $$500,000$ of sales that would have occurred next year will be accelerated into this year, but at a

$10\%$ discount, thereby yielding only $$450,000$ in revenue this year.