Fast Turnstiles Company is evaluating the extension of credit to a new group of customers. Although these customers will provide $540,000 in additional credit sales, 15 percent are likely to be uncollectible. The company will also incur $18,100 in additional collection expense. Production and marketing costs represent 72 percent of sales. The firm is in a 30 percent tax bracket and has a receivables turnover of five times. No other asset buildup will be requlred to service the new customers. The firm has a 12 percent desired return. a-1. Calculate the incremental income after taxes. a-2. Cakulate the return on incremental investment. Note: Input your answer as a percent rounded to 2 decimal places. a-3. Shouid Fast Turnstiles Company extend credt to these customers? Yes No b-1. Calculate the incremental income after taxes if 18 percent of the new sales prove to be uncollectible. b-2. Colculate the feturn on incremental investment if 18 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 18 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 15 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 receivabies turnover drops to 1.6 and 15 percent of the accounts are uncollectibie? Yes No