CH2 HW Mint O. Help Seve Exit 6 Check my work Problem 7.19 Credit policy decision with changing variables (L07-4) 10 po Fast Turnstiles Co is evaluating the extension of credit to a new group of customers. Although these customers will provide $342.000 in additional credit sales. 3 percent are likely to be uncollectible. The company will also incur $17500 in additional collection expense Production and marketing costs represent 73 percent of sales. The firm is in a 35 percent tax bracket and has a recevables turnover of five times No other asset buildup will be required to service the new customers. The firm has a 10 percent desired return .-1. Calculate the incremental income after taxes Incremental income taxes 6-2 Calculate the return on incremental investment input your answer as a percent rounded to 2 decimal places. Reun on increment Help Seve Submit 6 Check my werk 6-3. Should Fast Turnstiles Co extend credit to these customers into Yes O NO Stipped b-1. Calculate the incremental income after taxes if 16 percent of the new sales prove to be uncollectible, Incremental income after tanes Teder b-2. Calculate the return on incremental investment in 16 percent of the new sales prove to be uncollectible input your answers percent rounded to 2 decimal places.) Return on incremental Investment SO Next > Help Seves Subout 6 b-3. Should credit be extended if 16 percent of the new sales prove uncollectible? Check my work Yes O NO Dints Skipped -1. Calculate the return on incremental investment if the receivables turnover drops to 16 and 13 percent of the accounts are uncollectible (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment Prime -2. Should credit be extended if the receivables turnover drops to 16 and percent of the accounts are not Yes NO