If the Collection Period of a Company Is 31 Days

question 152

Multiple Choice

If the collection period of a company is 31 days, and the average receivables is $70,060, what is the total amount of the credit sales?

• A) $2,171,860
• B) $ 824,900
• C) $ 83,126
• D) $ 2,260

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Definitions:

Sales Mix

The combination of different products or services that a company sells, typically analyzed to determine the most profitable mix.

Sales Mix

The combination of products or services that a company sells, reflecting the variation in profit margins for each.

Annual Fixed Expenses

Costs that do not vary with the level of production or sales over a year, such as rent, insurance, and salaried personnel wages.

Break-Even

The point at which total costs equal total revenue, resulting in neither profit nor loss.