M8-1 Evaluating the Decision to extend Credit (LO 8-13 Nutty Productions Inc. generated service revenue of $42,000 and income from operations of $16,000. The company estimates that, had it extended credit, it would have instead generated $78,000 of service revenue, but it would have incurred $31,000 of additional expenses for wages and bad debts. 1-a. Using these estimates, calculate the amount by which income from Operations would increase (decrease). poed eBook Income from Operations Print References 1-b. Should the company extend credit? Yes Prev 1 of 8 Next >