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:

Test Marketing

A strategy used by companies to evaluate the viability of a new product or service in a smaller, controlled market before a wider release.

Marketing Strategy

A comprehensive plan formulated by a business to achieve specific marketing objectives, such as increasing brand awareness or sales.

Product Spread

The variety and range of products offered by a company or within a specific market, reflecting the diversity in choices available to consumers.

Commercialization Stage

The phase in a product lifecycle where it is introduced to the market and made available to consumers.