Price Corp. is considering selling to a group of new customers and creating new annual sales of $280,000. 3% will be uncollectible. The collection cost on all accounts is 2% of new sales, the cost of producing and selling is 75% of sales, and the firm is in the 19% tax bracket. What is the profit on new sales?

Multiple Choice

• $46,647

• $46,488

• $45,360

• $47,538