Custom Embroidering, Inc. (CEI) manufactures baseball hats with the Arizona State University Sun Devil logo embroidered on the hats.Even though the baseball hats come in a variety of colors, the hats are considered to be a single product.Each hat sells for $20 and CEI has forecasted quarterly sales for 2020 are as follows:

DollarsUnits

1stQuarter$150,0007,500

2ndQuarter$200,00010,000

3rdQuarter$225,00011,250

4thQuarter$175,0008,750

Assume that seventy-five percent (75%) of the hats are sold for cash and the remaining sales are made on credit.The collection of credit sales is expected to be 50% in the quarter sold and 50% in the quarter following the sale. What is the amount of forecasted total cash collections for thethirdquarter of 2020?

a. $221,875

b. $168,750

c. $196,875

d. $225,000