Michigan Pharmaceuticals Inc. a wholesale distributor of ethical drugs to local pharmacies, has been experiencing a relatively long average collection period because many of its customers face liquidity problems and delay their payments well beyond the due date. In addition, its bad$-$debt loss ratio is high because a number of pharmacies have closed due to financial difficulties. To avoid these problems in the future, Michigan Pharmaceuticals is considering a plan to institute more stringent credit standards to keep the average collection period and bad$-$debt losses from rising beyond acceptable limits$.$ Specifically, the firm plans to refuse to grant additional credit to any current customers more than $15$ days past due on their payments. Such a change in credit policy is expected to reduce current annual sales of $$8\mathrm{.}5$ million by $30$ percent, reduce the average collection period from $110$ days to $90$ days, and lower bad$-$debt losses from $6$ to $5$ percent. Due to the expected decrease in sales, the company estimates that its inventories will decrease by $$350,000.$ The firm$$s variable cost ratio is $0\mathrm{.}55,$ and its required pretax return on investments in receivables and inventories is $10$ percent. Determine the net effect of this plan on the pretax profits of Michigan Pharmaceuticals. Assume there are $365$ days per year. Round your answer to the nearest dollar. Enter your answer in whole dollars. For example, an answer of $$1\mathrm{.}20$ million should be entered as $1,200,000,$ not $1\mathrm{.}20.$ Use minus $(-)$ sign for negative figure.