Nutty Productions Inc. generated service revenue of $32,000 and income from operations of $11,000. The company estimates that, had it extended credit it would have instead generated $63,000 of service revenue, but it would have incurred $26,000 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

Increase

by