2) Sirignano Corporation produces and sells one product. The budgeted selling price per unit is $84. Budgeted unit sales for October, November, December, and January are 8,400, 12,000, 13,800, and 14,300 units, respectively. All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for November is closest to: A) $826,560 B) $705,600 C) $423,360 D) $403,200

Question

Business

Clarke

16 December, 15:29

2) Sirignano Corporation produces and sells one product. The budgeted selling price per unit is $84. Budgeted unit sales for October, November, December, and January are 8,400, 12,000, 13,800, and 14,300 units, respectively. All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for November is closest to: A) $826,560 B) $705,600 C) $423,360 D) $403,200

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Answers (1)

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Brittany Lynn · Answer 1

Collection on November 826560

Explanation:

We have a portion of current month sales 40%

and the remainder of the previous month 60%

November collection:

Current month

40% November 12,000*84*40% = 403,200

Previous month

60% October 8,400*84*60%=423,360

Total collection on November 826560