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.$$a$.$Compute the incremental income before

taxes.$$Incremental income before taxes$$

$$$$$b$.$What will the firm$$s incremental return

on sales be if these new credit customers are

accepted?$($Round the final answer to

$2$ decimal place.$)$Incremental return on sales$$

$\%$c$.$If the receivable turnover ratio is $8$

to $1,$ and no other asset buildup is needed to serve the new

customers, what will Johnson Electronics$$ incremental return on new

average investment be$?($Do round intermediate

calculations. Round the final answer to the nearest whole

percentage.$)$Incremental return on new average investment$$

$$