Fast Tumsules Co. Is evaluating the extension of credit to a new group of customers. Although these customers will provide $234.000 In additional credit cales, 15 percent are likely to be uncollectible. The company will also incur $16.500 In additonal collection exponse. Production and markeung costs represent 70 percent of sales. The firm is in a 30 percent tax bracket and has a recolvables turnover of four times. No other asset buldup 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 coas 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? Yes O No b-1. Calculate the incremental Income after taxes if 18 percent of the new sales prove to be uncollectible Incremental income after taxes b-2. Calculate the return on incremental investment of 18 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 18 percent of the new sales prove uncollectible? O Yos O No c-1. Calculate the return on incremental Investment If the recelvables turnover drops to 16 and 15 percent of the accounts are uncollecuble. (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 16 and 15 percent of the accounts are uncollectible? Yes O No