Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $160,000 if credit is extended to these new customers. Of the new accounts receivable generated, 10 percent will prove to be uncollectible. Additional collection costs will be 3 percent of sales, and production and selling costs will be 75 percent of sales.

What is the cost of uncollectible sales?	Answer 1Choose...10%$9,600$240,000$24,0005%$90,000$120,00015%$16,000$4,800
What is the collection costs of the company?	Answer 2Choose...10%$9,600$240,000$24,0005%$90,000$120,00015%$16,000$4,800
What are the production and selling costs?	Answer 3Choose...10%$9,600$240,000$24,0005%$90,000$120,00015%$16,000$4,800
INDEPENDENT REQUIREMENT/IGNORE INFORMATION PROVIDED ABOVE What is the incremental return on sales? Assume that the incremental sales are $200,000 and the incremental income is $10,000.	Answer 4Choose...10%$9,600$240,000$24,0005%$90,000$120,00015%$16,000$4,800