Price Corp

question 102

Multiple Choice

Price Corp. is considering selling to a group of new customers and creating new annual sales of $90,000. 5% 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 these.

Grasp the concepts of mental imaging and its cognitive processing implications.

Differentiate between intelligence, creativity, and the effectiveness of problem-solving strategies.

Acknowledge the role of emotional intelligence in personal and professional success.

Understand the significance of insight in the problem-solving process.

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Definitions:

Promissory Note

A fiscal device comprising a binding commitment from one party to another to remit a precise sum of money, which can be demanded anytime or on a predetermined date.

Merchandise

Goods that are bought and sold in business.

Sales Transaction

An exchange in which goods, services, or assets are sold and transferred from a seller to a buyer.

Percent of Receivables Method

An accounting method used to estimate the amount of a company's receivables that will not be collected.