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, 13 percent are likely to be uncollectible. The company will also incur $17,100 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 receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 10 percent desired return. a1. Calculate the incremental income after taxes. Incremental income after taxes a2, 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 No b-1. Calculate the incremental income after taxes if 16 percent of the new sales prove to be uncollectible. Incremental income after taxes b-2. Calculate the return on incremental investment if 16 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 16 percent of the new sales prove uncollectible? Yes No C-1. Calculate the return on incremental investment if the receivables turnover drops to 1.6 and 13 percent of the accounts are uncollectible. (put your answer as percent rounded 2 decimal places.) Return on incremental investment c-2. Should credit be extended if the receivables turnover drops to 1.6 and 13 percent of the accounts are uncollectible? Yes No