Andrea’s Shop sells china, silverware, and kitchenware. A popular feature is her wedding registry service, which includes free gift wrapping and delivery of gifts to local brides. Andrea accepts cash, checks, and VISA, MasterCard, and American Express charges. These methods of payment have the following characteristics:

Cash Payment is immediate; no fee is charged.

Check Payment is immediate; the bank charges $0.25 per check; one percent of check revenue is from “bad” checks that Andrea cannot collect.

VISA/MasterCard Andrea accumulates these credit card receipts throughout the month and submits them in one bundle for payment on the last day of the month. The money is credited to Andrea’s account by the fifth day of the following month. A fee of 1.5 percent is charged by the credit card company.

American Express Andrea accumulates these receipts throughout the month and mails them in for payment on the last day of the month. American Express credits Andrea’s account by the sixth day of the following month. A fee of 3.5 percent is charged by American Express.

During a typical month, Andrea has sales of $24,000, broken down as follows:

American Express 20%

VISA/ MasterCard 50%

Check 5% (checks average $37.50 each)

Cash 25%

Required:

If Andrea estimates sales of $30,000 in April and $60,000 in May, what are her planned net cash receipts for May? lp6