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Lyman Company has the opportunity to increase annual credit sales $100,000 by selling to a new, riskier group of customers. The expenses of collecting credit

Lyman Company has the opportunity to increase annual credit sales $100,000 by selling to a new, riskier group of customers. The expenses of collecting credit sales are expected to be 16 percent of credit sales. The company's manufacturing and selling expenses are projected at 75% of sales, and its effective tax rate is 21%. If Lyman accepts this opportunity, its after-tax profits would increase by an estimated: O $10,200. $10,000. $9,000. Some amount o other than these choices. O $14,400

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