Problem $7-17$ Credit policy decision $[$LO$7-4]$ Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $$110,000$ if credit were extended to these new customers. Of the new accounts receivable generated, $5$ percent will prove to be uncollectible. Additional collection costs will be $2$ percent of sales, and production and selling costs will be $70$ percent of sales. The firm is in the $10$ percent tax bracket. a$.$ Compute the incremental income after taxes.