Amica Insurance Company specializes in whole life insurance contracts. Cash collection experience shows that 30 percent of billed premiums are collected in the month before they are due, 60 percent are collected in the month they are due, and 6 percent are collected in the month following their due date. 4 percent of the billed premiums are collected late (in the second month following their due date). Total billing notices in January were $50,000; in February, $60,000; in March, $66,000; in April, $65,000; in May, $65,350; and in June, $70,000. How much cash does the company expect to collect in May?

• A.

$56,000

• B. None of the above
• C.

$60,000

• D.

$63,540

• E.

$66,750