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Suppose that a company has the following accounts receivable collection pattern: Paid in the month of sale 28% Paid in the month following sale 72%

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Suppose that a company has the following accounts receivable collection pattern: Paid in the month of sale 28% Paid in the month following sale 72% All sales are on credit. If credit sales for January and February are $250,000 and $120,000 respectively, the cash collection for February is: $213,600 $196,800 $180,000 $224,900 StarZinc Company produced 200 defective units last month at a unit manufacturing cost of $50. The defective units were discovered before leaving the plant. StarZinc can sell them as is for $35 or can rework them at a cost of $25 and sell them at the regular price of $100. The total relevant cost of reworking the defective units is $2,000. $8,500. $7,800. $5,000

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