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Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $16.50 per unit and costs $12.50 per unit to produce.
Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $16.50 per unit and costs $12.50 per unit to produce. A level production policy is followed. Each months production is equal to annual sales (in units) divided by 12 (4,500). Of each months sales, 30% are for cash and 70% are on account. All accounts receivable are collected in the month after the sale is made. a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 4,000 units. (Note: To do part a, you should work in terms of units of production and units of sales.) b. Prepare a monthly schedule of cash receipts. Sales in the December before the planned
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