Lawson Company has the opportunity to increase annual sales by $100,000 by selling to a new, riskier group of customers. Based on sales, the uncollectible expense is expected to be 15 , and collection costs will be 5 . The company?s manufacturing and selling expenses are 70% of sales, and its effective tax rate is 40%. If Lawson accepts this opportunity, the company?s after-tax profit will increase by

$4,000
$6,000
$9,000
$10,000

Answer rating: 100% (QA)

The detailed answer for the above question is provide... View the full answer