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Expanding into the luxury auto seat market

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Martini Inc. is a supplier of leather to the manufacturers of leather goods. The company is considering expanding into the luxury auto seat market. It is estimated that although selling leather will bring additional annual sales of $700,000, a high 12% of those accounts will be uncollectible. The cost of conditioning and selling the leather is 70% of sales. The company's tax rate is 46%. Should Martini Inc. expand into the auto seat market? Show your computations.

Reference no: EM132758656

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Expanding into the luxury auto seat market : Martini Inc. is a supplier of leather to the manufacturers of leather goods. The company is considering expanding into the luxury auto seat market.
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