1. Center Company makes collections on sales according to the following schedule:

40% in the month of sale

50% in the month following sale

7% in the second month following sale

The following sales are expected:

	Expected Sales
January	$	125,000
February	$	143,000
March	$	136,000

Cash collections in March should be budgeted to be:

2. You have been provided with the following information for the Wool Division of a decentralized company:

Selling price	$	64
Variable cost per unit	$	52
Fixed cost per unit	$	50
Sales volume (units)		60,500
Capacity (units)		63,000

The Blanket Division would like to purchase all of its units internally. The Blanket Division needs 6,000 units each period and currently pays $80 per unit to an outside firm. Assuming that the Blanket Division wants to use a sole supplier and will not purchase less than 6,000 from a supplier, what is the lowest price that Wool Division should accept from the Blanket Division?