Meghans Market Co. 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 companys 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)