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Waldron Inc. is considering selling to a group of new customers that will bring in credit...

Waldron Inc. is considering selling to a group of new customers that will bring in credit sales of $8,000,000 with a bad debt percentage of 15%. Waldron will have collection costs of $144,000. and CGS & selling expenses of 70% of sales. They have tax rate of 35%. The only additional investment they will have is in accounts receivable on which they turnover of 4. Their return on sales or profit margin will be:

a: $250,000

b: 42,90%

c. 34.32%

d: 8.58%

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