Bluegrass Distilleries, Inc. refuses to extend credit to any wholesale distributors who have a history of being delinquent in repaying credit extended to them. This policy results in lost sales of $$12$ million annually. Based on experience with these types of customers, the firm estimates that the average collection period would be $100$ days and that the bad$-$debt loss ratio would be $15\%.$ The firm's variable cost ratio is $0\mathrm{.}65,$ making its profit contribution ratio $0\mathrm{.}35.$ Bluegrass Distilleries would invest an additional $$4$ million in inventory. Bluegrass Distilleries' required pretax return $($i$.$e$.,$ opportunity cost$)$ on receivables and inventory investments is $17\%.$ When converting from annual to daily data or vice versa, assume there are $365$ days per year. Determine the net effect on Bluegrass Distilleries' pretax profits of extending credit to these $($previously delinquent$)$ customers. Should the firm proceed with the credit extension?