OB$1$ Sabres Ltd$.$ has determined that product sales are not what they could be because they have unused capacity $.$ As a result $,$ the company is considering adjusting its marketing strategy $.$ At present $,$ all sales to distributors are on a cash basis $,$ but the competition offers credit terms $.$ Similar credit terms for OB$1$ Sabres have been suggested $.$ Research suggests that sales in the upcoming year would jump from $ $4\mathrm{.}39$ million annually to $ $5\mathrm{.}68$ million with credit terms of $2/10,$ net $30.$ Furthermore $,$ research estimates that $75$ percent of the customers would take the discount and the remainder would pay on average on the $30$th day $.$ Inventory turnover would remain at $15$ times a year $.$ Cost of goods sold $($ variable costs $)$ are $75$ percent of gross sales $.$ Bad debts are estimated to be $0\mathrm{.}75$ percent of credit sales $.$ Credit department expenses would be $ $51,800$ per year plus the salary of $2$ individuals at $ $36,800$ per year each One of the staff would be reassigned from another division without affecting costs or productivity as that individual is currently redundant in that division $.$ Marketing expenses are $4$ percent of gross sales $.$ Bank financing of working capital requirements is at $11$ percent $.$ a $.$ Should OB$1$ Sabres Ltd$.$ adopt the proposed policy $?$ Yes Nob. Show the calculations$($Use $365$ days in a year. Do not leave any empty spaces; input a "wherever required. Round the answers to the nearest whole dollar. Negative answers and the values to be deducted should be indicated by a minus sign. Enter answers in whole dollar, not in million. Do not round intermediate calculation.$)$ Sales Present policy New policy Contribution margin A Discount expense Present policy New policy Bad debt expense Present policy New policy Marketing expense Present policy New policy Administrative expense $($related to credit department$)$ Present policy New policy.Investment in accounts receivable Present policy New policy $75\%$ of the customer's $25\%$ of the customers $\%$ Opportunity benefit on investment in A$/$R Investment in inventory Present policy New policy Opportunity benefit on inv. investment Total incremental change.