Price Corp

question 32

Multiple Choice

Price Corp. is considering selling to a group of new customers and creating new annual sales of $90,000. Five percent will be uncollectible. The collection cost on all accounts is 3% of new sales, the cost of producing and selling is 80% of sales, and the firm is in the 30% tax bracket. What is the profit on new sales?

• A) $7,560
• B) $9,660
• C) $7,245
• D) $10,710

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Definitions:

Type II Error

A statistical error that occurs when a test fails to reject a false null hypothesis.

Unfair Labor Practices

Actions taken by employers or unions that violate the rights of employees or regulations governing labor relations.

National Labor Relations Act

A foundational US law enacted in 1935 to protect the rights of employees and employers, encouraging collective bargaining and regulating union activities.

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Organizations formed for the purpose of representing their members' interests in dealing with employers.