Price Corp. is considering selling to a group of new customers - 597

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Price: $1.25
  • From: ,
  • Posted on: Thu 01 Mar, 2012
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Request Description

Price Corp. is considering selling to a group of new customers and creating new annual sales of $70,000. 5% will be uncollectible. The collection cost on these accounts is 3.5% of new sales, the cost of producing and selling is 80% of sales and the firm is in the 31% tax bracket. What is the profit on new sales?
A) $5,554.50
B) $9,660.00
C) $7,245.00
D) none of the above

Solution Description

Price Corp. is considering sell