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REI Equipment offers a 3% discount to customers who pay cash at the time of sale and a 2% discount to customers who pay within
REI Equipment offers a 3% discount to customers who pay cash at the time of sale and a 2% discount to customers who pay within the first 10 days of the month after sale. Past experience shows that cash collections from customers tend to occur in the following pattern:
Cash collected at time of sale | 55% |
Collected within cash discount period in first 10 days of month after sale | 15 |
Collected after cash discount period in first month after month of sale | 10 |
Collected after cash discount period in second month after month of sale | 15 |
Never collected | 5 |
Compute the total cash budgeted to be collected in March if sales forecasts are $370,000 for January, $420,000 for February, and $460,000 for March.
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