Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide exist468.000 in additional credit sales, 11 percent are likely to be uncollectible. The company will also incur S 17.700 in additional collection expense. Production and marketing costs represent 76 percent of sales. The firm is in a 30 percent tax bracket and has a receivables turnover of five times. No other asset will be required to service the new customers. The firm has a 10 percent desired return. Calculate the incremental income after taxes. Incremental income after taxes Calculate the return on incremental investment. Should Fast Turnstiles Co. extend credit to these customers? Yes No Calculate the incremental income after taxes if 14 percent of the new sales prove to be uncollectible. Calculate the return on incremental investment if 14 percent of the new sales prove to be uncollectible. Should credit be extended if 14 percent of the new sales prove uncollectible? Calculate the return on incremental investment if the receivables turnover drops to 1.6, and 11 percent of the accounts are uncollectible. Should credit be extended if the receivables turnover drops to 1.6. and 11 percent of the accounts are uncollectible? No Yes