What is the net income expected on the new sales

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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. What is the net income expected on the new sales?

Reference no: EM13883435

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