Galenic Inc. is a wholesaler for a range of pharmaceutical products. Before deducting any losses from bad debts. Galenic operates on a profit margin of 6%. For a long time the firm has employed a numerical credit scoring system based on a small number of key ratios This has resulted in a bad debt ratio of 100% Galenic has recently commissioned a detailed statistical study of the payment record of its customers over the past 6 years and after considerable experimentation, has identified five variables that could form the basis of a new credit scoring system. On the evidence of the past 8 years. Galenic calculates that for every 10,000 accountsit would have experienced the following default rates O ALL OUT Credit Score under Peoposed system Defaulting Pays Total 919 worse than 30 10 Better than DO 40 100 16 340 Total 800 900 b. Assuming that the firm's estimates of default rates are right, what would the profit per $100 of original sales be under the new credit scoring system? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Profit T d. Suppose that one of the variables in the proposed new scoring system is whether the customer has an existing account with Galenic new customers are more likely to default). Would you be more or less likely to accept the proposal Hit Think about repeat sales More or less likely to accept the proposal