https:// ved mapter 7 HW 12 Fast Turnstiles 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 and has a receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 10 percent desired return. a-1. Calculate the incremental income after taxes. Beferences incremental income after taxes 3-2. Calculate the return on incremental Investment. (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment 94 6-3. Should Fast Turnstiles Co extend credit to these customers? Yes No ic raw e here to search