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Maxim Fasteners distributes giant binder clips that sell for $3 each. Maxim pays $1.20 each to buy the clips. The company has $4,000 per
Maxim Fasteners distributes giant binder clips that sell for $3 each. Maxim pays $1.20 each to buy the clips. The company has $4,000 per month in fixed costs. Policies and other information follow: Inventory is maintained at the end of each month equal to 10% of the next month's projected sales in units. Purchases are paid 40% in the month acquired and the balance in the month after. All sales are on credit, and 30% are collect in the month of sale and 70% in the month after sale. Budgeted monthly sales in units for the first five months of 2020 are as follows: January 6,000 units February 5,000 units March 7,000 units April 9,000 units 8,000 units May Variable selling and administrative costs are $0.50 per clip and are paid in the month of incurred. How much are budgeted cash collections during April?
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