Price Corp

question 48

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 these 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)None of the options

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Definitions:

CEO

Chief Executive Officer, the highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.

Readiness Level

The degree to which an individual, group, or organization is prepared and able to undertake a specific task or to respond to a situation.

Leadership Style

The characteristic approach and methods used by a leader to guide, motivate, and manage their team.

Strategic Goals

Long-term objectives intended to guide the direction and decision-making processes of an organization or individual in pursuit of favorable outcomes.