A company is thinking of extending their credit terms. This would increase sales by $20\%$ to $$1,200,000.$ However, DSO would increase from $30$ to $50$ days and bad debt losses would increase from $2\%$ to $5\%.$ The increase in sales would require a higher level of inventory. Variable costs are $65\%.$ The company$$s required return on investments is $8\%$ percent and their inventory turnover is $3$ times. What is the change in pre$-$tax profits from the current policy to the new policy? Should the company change their policy? $($assume a $365$ day year$)$