4 Check Problem 7-22 Comiskey Fence Co. is evaluating extending credit to a new group of customers. Although these customers will provide $252.000 in additional credit sales, 8 percent are likely to be uncollectible. The company will incur $16,600 in additional collection expenses Production and marketing expenses represent 75 percent of sales. The company has a receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 18 percent desired return on investment --1. Calculate the incremental income before taxes from this new group of customers. Incremental income before taxes 26740 2. Calculate the return on incremental investment. (Round the final answer to 2 decimal place) Return on incremental investment 5206% Book -3. Should Cominsky extend credit to these customers? Werne Yes No b-1. Calculate the incremental income before taxes from the new group of customers it 11 percent of the sales prove uncollectable Incremental income before taxes b-2. Calculate the return on incremental investment if 11 percent of the new sales prove uncollectible. (Round the final answer to 2 decimal place.) $ Return on incremental investment b3. Should credit be extended percent of the new sales prove uncollectible? Yes