Question: Study the information given below and calculate the after - tax profit on the new sales. ( 5 marks ) INFORMATION The owner of Flamingo

Study the information given below and calculate the after

-

tax profit on the new sales.

(5

marks

)

INFORMATION The owner of Flamingo Limited is considering selling on credit to customers in another city. Sales from these customers are expected to amount to R

560 000 .

However,

16 %

of the sales is expected to be uncollectible. Additional collection costs are estimated to be

12 %

of sales. The goods will be priced at cost plus

40 % .

The tax rate of the company is

27 % .

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