Nutty Productions Incorporated generated service revenue of $52,000 and income from operations of $21,000. The company estimates that, had it extended credit, it would have instead generated $93,000 of service revenue, but it would have incurred $36,000 of additional expenses for wages and bad debts.

Required:

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

2. 1-b. Should the company extend credit?