Check my work 7. Problem 7-20 Credit policy decision with changing variables (L07-4] 10 points . Slow Roll Drum Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $468,000 in additional credit sales, 11 percent are likely to be uncollectible. The company will also incur $17,700 in additional collection expense Production and marketing costs represent 76 percent of sales. The firm is in a 30 percent tax bracket. No other asset buildup will be required to service the new customers. The firm has a 10 percent desired return. Assume the average collection period is 120 days. a. Compute the return on incremental investment (Input your answer as a percent rounded to 2 decimal places. Use a 360-day year.) References Return on incremental investment b. Should credit be extended to the new group of customers? Yes O No