How would I calculate marginal profitability from changing the credit policy from the Current Policy to Policy A, Policy A to B, B to C, C to D, and D to E? Note that under required return, the incremental percentage is changing from the Current Policy to Policy A, and so forth.

Exhibit 2 & 3 Annual Sales original Sales Incremental Sales ACP From original Sales From Incremental Sales Bad Debt From original Sales From Incremental Sales Avg. Inventory Incremental Inventory Required Return Inventory/original A/R Incremental Current Policy Policy A Policy B Policy C Policy D Policy E S25,000,000 $27,250,000 $29,250,000 $31,000,000 $32,500,000 $33,750,000 S25,000,000 $25,000,000 $27,250,000 $29,250,000 $31,000,000 $32,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 70.59 64.29 120 70.59 120 $737,500 S500,000 $500,000 S556,250 $616,250 S677,500 $61,250 $600,000 $56,250 $60,000 S56,250 $3,150,000 $3,175,000 $3,200,000 $3,220,000 $3,240,000 $3,255,000 $25,000 $25,000 $20,000 $20,000 $15,000 15% 15% 15% 15% 15% 15% 17% 19% 26% 21%