Check my work 9 Problem 7-19 Credit policy decision with changing variables [LO7-4) 10 points Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $252,000 in additional credit sales, 8 percent are likely to be uncollectible. The company will also incur $16,600 in additional collection expense Production and marketing costs represent 75 percent of sales. The firm is in a 35 percent tax bracket and has a receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 12 percent desired return 0-1. Calculate the incremental income after taxes References Incremental income for taxes a-2. Calculate the return on incremental investment. (Input your answer as a percent rounded to 2 decimal places) Return on mental investment 8-3. Should Fast Turnstiles Co extend credit to these customers Yes O NO b.1. Calculate the incremento income other test percent of the new sales prove to be uncollectie Italiano Me Check my work 9 10 points b.2. Calculate the return on incremental investment of 11 percent of the new sales prove to be uncollectible (Input your answer as a percent rounded to 2 decimal places.) Return on cromontat bovendien References b-3. Should credit be extended of 11 percent of the new sales prove uncollectible? Yes NO c.1. Calculate the return on incremental investment of the receivables turnover drops to 15 and 8 percent of the accounts are uncollectible (Input your answer as a percent rounded to 2 decimal places) Ramon incrementalment 2. Should credit be extended if the receivables turnover drops to 15 and a percent of the accounts are uncollectible Yes No