M8-1 Evaluating the Decision to Extend Credit [LO 8-1] Nutty Productions Inc. generated service revenue of $64,000 and income from operations of $27,000. The company estimates that, had it extended credit it would have instead generated $111,000 of service revenue, but it would have incurred $42,000 of additional expenses for wages and bad debts. 1-a. Using these estimates, calculate the amount by which Income from Operations would increase (decrease) Income from Operations by 1-b. Should the company extend credit? Yes No