Price Corp. is considering selling to a group of new customers and creating new annual sales of $50,000. It is estimated that 5% of these new sales will be uncollectible. The collection cost on these accounts is 3.5%, the cost of producing and selling is 80% of sales, and the firm is in the 30% tax bracket. If the only new investment will be an increase in accounts receivable and the company has a receivables turnover of 4, what can Price Corp. expect as an incremental return on investment?

Select one:

A. 60.37%B. 46.44%C. 32.20%D. 11.52%