Problem 7-19 (Algo) Credit pollcy decision with changing variables [LO7-4] Fast Turnstiles Company is evaluating the extension of credit to a new group of customers. Although these customers will provide $108.000 in additional credit sales, 8 percent are likely to be uncollectible. The company will aish incur $15.800 in additional collection expense. Production and marketing costs represent 71 percent of sales. The firm is in a 30 percent tax bracket and has a receivables turnover of four times. No other asset buildup will be required to service the new customers. The firm has a 8 percent desired return. a-1. Calculate the incremental income after taxes. 0.2. Caiculate the refurn on incremental investment. Note: Input your answer os o percent rounded to 2 decimal places. 0-3. Should Fast Turnsties Company extend credit to these customers? Yes b-1. Calculate the incremental income after taxes if 11 percent of the new sales prove to be uncollectible. b-2. Calculate the return on incremental investment if 11 percent of the new sales prove to be uncollectible. Note: Input your answer as a percent rounded to 2 decimal places. b-3. Should credit be extended if 11 percent of the new sales prove uncoliectible? Yes No c-1. Calculate the return on incremental investment if the recelvables turnover drops to 1.6 and 8 percent of the accounts are uncollectible. Note: Input your onswer as o percent rounded to 2 decimal pioces