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Sadler Corporation produces and sells one product with a budgeted selling price per unit of $50. Budgeted unit sales for October, November, and December are
Sadler Corporation produces and sells one product with a budgeted selling price per unit of $50. Budgeted unit sales for October, November, and December are 20,000, 12,000, and 14,000 units, respectively. All sales are on credit with 30% collected in the month of the sale, 60% in the month after the sale and 10% in the second month after the sale. The expected cash collections for November is closest to:
a. | $180,000 | |
b. | $600,000 | |
c. | $780,000 | |
d. | $420,000 |
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