Use the Information Below to Answer the Following Questions

question 18

Multiple Choice

Use the information below to answer the following questions.
Sales in December were $960,000. Projected sales for the first quarter of 2015 are:
January $1,080,000
February $1,200,000
March $1,280,000
Sales are 20% cash and 80% on credit. Debtors pay in the month following the sale.
-Refer to the table above. Calculate the total cash sales for the three months, January, February and March.

• A) $256,000
• B) $712,000
• C) $2,848,000
• D) $960,000

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Definitions:

Decline in Technology

A decline in technology refers to a period or situation where technological progression slows down, technologies become obsolete, or there is a decrease in the adoption of new technologies.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in a decreased cost per unit.

Positive Economic Profits

Earnings that exceed the total opportunity costs of all inputs, indicating a return above the normal profit level.

Expand

To increase in size, number, or importance, often relating to businesses aiming to grow through increased operations, product lines, or market reach.