17 Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $486,000 in additional credit sales, 12 percent are likely to be uncollectible. The company will also incur $17,800 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 four times. No other asset buildup will be required to service the new customers. The firm has a 12 percent desired return. 3 points a-1. Calculate the incremental income after taxes. Incremental income after taxes eBook Hint Print a-2. Calculate the return on incremental investment. (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment % a-3. Should Fast Turnstiles Co. extend credit to these customers? O Yes O No b-1. Calculate the incremental income after taxes if 15 percent of the new sales prove to be uncollectible. Incremental income after taxes b-2. Calculate the return on incremental investment if 15 percent of the new sales prove to be uncollectible. (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment % b-3. Should credit be extended if 15 percent of the new sales prove uncollectible? O Yes No C-1. Calculate the return on incremental investment if the receivables turnover drops to 1.5 and 12 percent of the accounts are uncollectible. (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment % C-2. Should credit be extended if the receivables turnover drops to 1.5 and 12 percent of the accounts are uncollectible? O Yes