Nutware Productions Inc. generated sales of $30,000 and gross profit of $10,000 last year. The company estimates

Question:

Nutware Productions Inc. generated sales of $30,000 and gross profit of $10,000 last year. The company estimates that it would have generated sales of $60,000 had it extended credit, but there would be additional costs for associated wages and bad debts totaling $25,000. Should the company extend credit?