ARO Inc. prepares rolling budgets for the upcoming two months. For December, January, and February, the firm expects to sell 10,000 units, 4,000 units and 7,000 units respectively. The selling price is $8 per unit. Actual sales during November were $48,000.Sales on account amount to 80% of all sales. Collection of sales on account amount to 10% in the month of the sale and 90% in the month following the sale. What is ARO's budgeted cash collections for February?

Multiple Choice

• $38,720
• $48,640
• $44,800
• $27,520