Nutty Productions Incorporated 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.

Required:

$1-$a$.$ Using these estimates, calculate the amount by which Income from Operations would increase $($decrease$).$

$1-$b$.$ Should the company extend credit?