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Price Corp. is considering selling to a group of new customers and creating new annual sales of $150,000. 2% will be uncollectible. The collection cost

Price Corp. is considering selling to a group of new customers and creating new annual sales of $150,000. 2% will be uncollectible. The collection cost on these accounts is 4% of new sales, the cost of producing and selling is 78% of sales and the firm is in the 32% tax bracket. What is the profit on new sales? $29,966 $16,320 $26,320 $117,000

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