Quattro Began Operations in April of This Year

question 54

Multiple Choice

Quattro began operations in April of this year.It makes all sales on account,subject to the following collection pattern: 30% are collected in the month of sale;60% are collected in the first month after sale;and 10% are collected in the second month after sale.If sales for April,May,and June were $60,000,$80,000,and $70,000,respectively,what were the firm's budgeted collections for June?

• A)$21,000.
• B)$60,000.
• C)$69,000.
• D)$75,000.
• E)Some other amount.

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Definitions:

All Other Things Equal

A phrase used in economics, indicating that all other variables are held constant except the variables being studied.

Relevant Factors

Factors that significantly impact the analysis or outcome of a particular situation or model.

Linear Production

A production process where outputs change proportionally with changes in input levels.

Maximum Number

The highest value or quantity that is achievable or allowed in a given set or range of values.