Nuthatch Corporation Began Its Operations on September 1 of the Current

question 58

Multiple Choice

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business-September, October, and November-are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.
The cash collections expected in September from accounts receivable are estimated to be

• A) $223,600
• B) $145,600
• C) $182,000
• D) $168,000

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Definitions:

Utility Function

An economic depiction of the way a consumer prioritizes various goods or combinations of goods.

Revenue Maximizing Price

The price point at which a company can generate the maximum amount of revenue from selling its product or service, considering the demand and cost factors.

Football Tickets

Football tickets are passes that allow entry to watch a football game, often sold by teams or authorized vendors.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels.