Price Corp

question 105

Multiple Choice

Price Corp.is considering selling to a group of new customers and creating new annual sales of $70,000.5% 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 31% tax bracket.What is the profit on new sales?

• A) $5,554.50
• B) $9,660.00
• C) $7,245.00
• D) $5,959.50

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Definitions:

Centered Moving Averages

A method used in time series analysis to smooth out short-term fluctuations and highlight longer-term trends or cycles by averaging data points in the middle of a set time window.

Quarterly Sales

The total sales revenue generated by a company or entity within a three-month period.

Motorcycle Dealership

A business that specializes in selling motorcycles and often provides maintenance and repair services.

Trend Component

An underlying pattern in a time series data set that shows the direction and pace at which the series values change over time.