Price Corp. is considering selling to a group of new customers and creating new annual sales of $120,000. 4% will be unc

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answerhappygod
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Price Corp. is considering selling to a group of new customers and creating new annual sales of $120,000. 4% will be unc

Post by answerhappygod »

Price Corp. is considering selling to a group of new customers
and creating new annual sales of $120,000. 4% will be
uncollectible. The collection cost on all accounts is 4% of new
sales, the cost of producing and selling is 83% of sales, and the
firm is in the 20% tax bracket. What is the profit on new
sales?
$9,768
$8,640
$9,927
$10,818
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