Problems 7-20 and 7-21 Problem 7-20 Comiskey Fence Co. is evaluating extending credit to a new group of customers. Although these customers will provide $126,000 in additional credit sales, 9 percent are likely to be uncollectible. The company will incur $15,900 in additional collection expenses. Production and marketing expenses of sales. The company has a receivables tunover of four times. No other asset buildup wl be required to service the new customers. The firm has a 17 percent desired return on investment. reprosent 70 percent a-1. Calculate the incremental income before taxes from this new group of customers Annual income before taxes a-2. Calculale the return on incremental investment. (Round the final answer to 2 decimal place.) Return on incremental investment Should Cominsky extend credit to these customers? O Yes a-3. O No b-1. Calculate the incremental income before taxes from the new group of customers if 12 percent of the sales prove uncollectable. Incremental income before taxes b-2. Calculate the return on incremental investment if 12 percent of the new sales prove uncollectible. (Round the final answer to 2 decimal place.) Return on incremental investment Should credit be extended if 12 percent of the new sales prove uncollectible? O Yes b-3. O No ample format for... doo COMM2215 - Prog....doc