Jovic Household Products wishes to speed up collection of its receivables. Jovic currently offers credit terms of net $30.$ It is considering changing to terms of $2/10,$ net $30.$ The collection period is expected to be reduced from $50$ to $30$ days. The percentage of customers paying within the discount period is expected to be $30$ percent. Bad debt losses will drop from $6$ percent of sales to $4$ percent. The inventory level is expected to increase by $$300,000.$ Annual billings are $$50$ million. The variable cost ratio is $75$ percent. The pretax return on funds made available by this change in policy is $10$ percent. Assuming the change in terms is made; determine the net effect on Jovic$$s pretax profits.