Multiple Choice
Price Corp. is considering selling to a group of new customers and creating new annual sales of $90,000. Five percent will be uncollectible. The collection cost on all accounts is 3% of new sales, the cost of producing and selling is 80% of sales, and the firm is in the 21% tax bracket. What is the profit on new sales?
A) $8,532
B) $9,660
C) $7,245
D) $10,710
Correct Answer:
Verified
Correct Answer:
Verified
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