The collection cost on these accounts is 5 of new sales the


Price Corp. is considering selling to a group of new customers and creating new annual sales of $440,000. 5% will be uncollectible. The collection cost on these accounts is 5% of new sales, the cost of producing and selling is 78% of sales and the firm is in the 29% tax bracket. What is the profit on new sales?

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Finance Basics: The collection cost on these accounts is 5 of new sales the
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