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Panama Pet Supply is considering selling to a group of new customers and creating new annual sales of $70,000. 5% will be uncollectible. The collection

Panama Pet Supply 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?

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