Parkison Company can increase annual sales by $150,000 if it sells to a new, riskier group of customers. The uncollectible accounts expense is expected to be 16% of sales, and collection costs will be 4 . The company?s manufacturing and selling expenses are 75 of sales, and its effective tax rate is 38%. If Parkison accepts this opportunity, its after-tax income will increase by

$2,850
$4,650
$7,500
$8,370

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