M$8-1($Static$)$ Evaluating the Decision to Extend Credit $[$LO $8-1]$

Nutty Productions Incorporated generated service revenue of $$30,000$ and income from operations of $$10,000.$ The company estimates that, had it extended credit, it would have instead generated $$60,000$ of service revenue, but it would have incurred $$25,000$ of additional expenses for wages and bad debts.

Required:

$1-$a$.$ Using these estimates, calculate the amount by which Income from Operations would increase $($decrease$).1-$b$.$ Should the company extend credit?

Complete this questlon by entering your answers in the tabs below.

Req $1A$

Req $1B$

Using these estimates, calculate the amount by which Income from Operations would increase $($decrease$).$

Income from Operations would

by