Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $240,000 if credit is extended to these new customers. Of the new accounts receivable generated, 6% will prove to be uncollectible. Additional collection costs will be 72% of sales, and production and selling costs will be 25% of sales. The firm is in the 25% tax bracket.

a.) a.) Compute the incremental income after taxes

b.) What will Johnson