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Our company makes and sells automotive airbags. our unit sales have been growing at the rate of 5% per month; We expect this growth trend
Our company makes and sells automotive airbags. our unit sales have been growing at the rate of 5% per month; We expect this growth trend to continue. We plan to sell 200,000 airbags in march. our February ending finished goods inventory is 150,000 units. Starting in March, our target is to have units in ending inventory equal to 75% the next month's budgeted unit sales. production requirement in units for the three-month period ending May 31 is closest to: A $ 665, 720.00 B. $ 654, 143.75 C. $ 630, 500.00 D. $ 228, 768.75 E. None of the above our budgeted cash and total sales in the second quarter of 2017 are below: We expect to collect our credit sales as follows: 60% in the month the sale is made; 30% in the month following sale; and 10% in the second month following sale. Our budgeted ending of March 31 is $90,000 (this includes $75,000 budgeted March uncollected sales and $15,000 budgeted uncollected February sales). What is the amount of our budgeted cash collections in April? A. $ 227, 500 B. $ 294, 250 C $ 280,000 D. $ 261, 250 E. None of the above
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