Fast Turnstiles Company is evaluating the extension of 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 also incur $16,600 in additional collection expense. Production and marketing costs represent 75 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 12 percent desired return. Q-1. Calculate the incremental income after taxes. Q.2. Calculate the return on incremental investment. Note: Input your answer as a percent rounded to 2 decimal places. 0-3. Should Fast Turnstiles Company extend credit to these customers? Yes No b-1. Calculate the incremental income after taxes if 11 percent of the new sales prove to be uncollectible b.2. Caiculate the return on incremental investment if 11 percent of the new sales prove to be uncollectible. Note: Input your answer as a percent rounded to 2 decimal places. b-3. Should credit be extended if 11 percent of the new sales prove uncollectible? Yes No c-1. Calculate the return on incremental investment if the receivables turnover drops to 1.5 and 8 percent of the accounts are uncollectible Note: Input your answer as a percent rounded to 2 decimal places. c-2. Should credit be extended if the receivables turnover drops to 1.5 and 8 percent of the accounts are uncollectible? Yes No