1a) 1b)

MM Co. predicts sales of $45,000 for May. MM Co. pays a sales manager a monthly salary of $4,500 plus a commission of 6% of sales dollars. MM's production manager recently found a way to reduce the amount of packaging MM uses. As a result, MM's product will receive better placement on store shelves and thus May sales are predicted to increase by 8%. In addition, MM's shipping costs are predicted to decrease from 4% of sales to 3% of sales. Compute budgeted sales and budgeted selling expenses for May assuming MM switches to this more sustainable packaging Budgeted sales Budgeted selling expenses X-Tel budgets sales of $80,000 for April, $120,000 for May, and $75,000 for June. In addition, sales are 60% cash and 40% on credit. All credit sales are collected in the month following the sale. The April 1 balance in accounts receivable is $15,000. Prepare a schedule of budgeted cash receipts for April, May, and June. Answer is not complete. X-TEL Cash Receipts Budget For April, May, and June April May June Sales $ 80,000 120,000 $ 75,000 Less: Ending accounts receivable Cash receipts from: Cash sales Collections of prior month's receivables Total cash receipts 48.000 15,000 72.000 32,000 45,000 48,000 $ 63.000 104000 $93.000