Problem 7-19 Credit policy decision with changing variables (LO7-4] Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $414,000 In additional credit sales, 8 percent are likely to be uncollectible. The company will also incur $17,400 in additional collection expense. Production and marketing costs represent 76 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 10 percent desired retum a-1. Calculate the incremental income after taxes. Incremental income after taxes a-2. Calculate the return on incremental investment. (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment Check my work