Webstaurant is an online store that sells restaurant equipment in bulk. The company is considering offering credit on terms of 2/20, net 50 to a group of costumers with low Credit Appraisal. Webstaurant estimates that $6,000,000 additional sales could be generated with this credit extension. The estimated average collection period for these customers is 60 days, and the expected bad-debt loss ratio is 5 percent. The company also estimates that an additional inventory investment of $1,200,000 is required for the anticipated sales increase. Approximately 20 percent of these customers are expected to take the cash discount. Webstaurant variable cost ratio is 0.78, and its required pretax rate of return on investments in current assets is 18 percent. Determine the net change in pretax profits due to this credit policy change.