Cohlmia Provided Information on Sales as Follows -Refer to Figure 9-8

question 72

Multiple Choice

$\begin{array}{lr}\text { Percent paid in the month of sale }&20\%\\\text {Percent paid in the month after the sale }&75\%\\\text { Percent paid in the second month after the sale }&2\%\\\end{array}$
Cohlmia provided information on sales as follows:
$\begin{array}{ll}\text { September } & \$ 100,000 \\\text { October } & \$ 120,000 \\\text { November } & \$ 200,000 \\\text { December (expected) } & \$ 250,000\end{array}$
-Refer to Figure 9-8. What are the expected cash receipts in December?

• A) $202,400
• B) $210,400
• C) $50,000
• D) $250,000
• E) $179,000

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Definitions:

Variable Expenses

Costs that fluctuate with production or sales volume, such as materials, utilities, and commissions.

Fixed Expenses

are costs that do not change with the volume of production or sales, such as rent and salaries.

Sales

The transactions between a company and its customers where goods or services are provided in exchange for money.

Margin of Safety

The difference between actual sales and breakeven sales, indicating how much sales can decrease before a business incurs a loss.