A new high-tech product was launched in July. This is the first product of its type in the marketplace. The budget for this product is as follows:

Mary, the vice president of finance, spoke harshly to John, the product manager, for not meeting the budgeted amounts. She threatened to discontinue the product if John did not meet budgeted sales for September. Mary also wants to know how much cash would have been collected if the budgeted sales had been achieved.
\section*{Required}
A. Create a schedule of cash collections for the budgeted sales for July and August. Assume that \(80 \%\) of sales are collected in the month of sale and the remaining \(20 \%\) of sales are collected the following month.
B. What strategic considerations should Mary take into account? Explain.

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July Expected sales in units. 2,000 Selling price per unit $ 50 Total sales $100,000 $ August 3,000 50 $150,000 However, the actual sales were not quite as high as was anticipated. The actual sales were: July August Actual sales in units 1,000 2,500 Selling price per unit $ 50 50 Total sales $50,000 $125,000