LTX Ltd is considering changing its credit terms from $2/10$ net $30$ to $3/10$ net $40.$ All sales are on credit. Currently, $40\%$ of the customers take advantage of the $2\%$ early settlement discount. Under the new credit policy, $60\%$ of the customers are expected to take advantage of the early settlement discount. The average collection period is expected to fall from $26$ days to $21$ days. Annual sales are expected to increase from R$600$m to R$630$m due to the change in credit policy. The contribution margin will remain at $30\%.$ Bad debt losses are expected to remain at $3\%$ of the sales for which early settlement discounts are not taken. The opportunity cost of financing working capital is $10\%$ per year. Ignore taxation. What is the change in the profitability for the year arising from the change in credit policy?

A$.$ R$1828767$

B$.-$R$1781096$

C$.$ R$4998904$

D$.$ R$3671507$

E$.$ R$3671507$

$$ a$.$ R$3671507$

$$ b$.$ R$4998904$

$$ c$.$ R$1828767$

d

$-$R$1781096$