Price Corporation is considering selling to a group of new customers and creating new annual sales of $100,000. 3% will be uncollectible. The collectioncost on all accounts is 3% of new sales, the cost of producing and selling is 80% of sales, and the firm is in the 21% tax bracket. What is the profit on newsales?Multiple Choice$11,060$12,188O$13,238$12,347

Step 1: Sales Revenue:New sales = $100,000 Step 2: Uncollectible Accounts:3% of the new sales will…

Answered: Price Corporation is considering…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 1P

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Help, I know the answer is between b and d but I am not sure which one?, please solve it by yourself A company requires $600,000 in sales to meet its target net income after tax. Itscontribution margin is 40%, and fixed costs are $80,000. How much is the target netincome, given that its after-tax rate is 70%?a. $160,000b. $112,000c. $400,000d. $48,000
Question attached below.
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The company has P3,000,000 sales. The variable costs are equal to fifty cents for every peso of sales. The fixed costs are estimated to be P100,000. The company has P1,000,000 debt outstanding at a before-tax cost of 10%. How much of a percentage increase would you expect in the company's net income if their sales were to increase by 20%? A. 18.33% B. 19.24% C. 21.50% D. 23.08%
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Sunrise Company sells 3, 650 frying pans per year. The owner has invested $80, 000 in the business and desires an 8% return on his investment (ROI = Net Income Investments). Product Costs VC $4.5 per pan FC $78,000 per year Selling and Administrative Costs VC $3.00 per pan FC $15,000 per year If Sunrise uses the income statement bottom-up forecasting to estimate revenue and absorption cost-based pricing, what is its selling price and markup percentage? A. 5.32% and $34.73 B. 34.25% and $34.73 C. 27.48% and $32.98 D. 363% and $34.73
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