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M8-1 Evaluating the Decision to Extend Credit [LO 8-1] Nutware Productions Inc. (NPI) generated service revenue of $30,000 and income from operations of $10,000. The

M8-1 Evaluating the Decision to Extend Credit [LO 8-1]

Nutware Productions Inc. (NPI) 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 $50,000 of service revenue but also it would have incurred $25,000 of additional expenses for wages and bad debts.

a-1.
Using these estimates, calculate the amount by which NPI's Income from Operations would increase (decrease) by extending credit. (Do not round intermediate calculations.)

Income from ? decrease/increase

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