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3) Price Corp. is considering selling to a group of new customers and creating new annual sales of $320,000. 3% will be uncollectible. The collection

3) Price Corp. is considering selling to a group of new customers and creating new annual sales of $320,000. 3% will be uncollectible. The collection cost on these accounts is 4% of new sales, the cost of producing and selling is 79% of sales and the firm is in the 26% tax bracket. What is the profit on new sales?

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