Price Corp. is considering selling to a group of new customers and creating new annual sales of $390,000. 2% will be uncollectible. The collection cost on all accounts is 2% of new sales, the cost of producing and selling is 79% of sales, and the firm is in the 19% tax bracket. What is the profit on new sales?

Multiple Choice

• $53,703

• $54,831

• $55,881

• $54,990