Zhang Industries Sells a Product for $700

question 144

Multiple Choice

Zhang Industries sells a product for $700. Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%.
- Zhang pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales in dollars. Assume 30% of Zhang's sales are for cash. The remaining 70% are credit sales; these customers pay in the month following the sale. Compute the budgeted cash receipts for June.

• A) $196,000.
• B) $280,000.
• C) $201,880.
• D) $285,880.
• E) $282,520.

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Definitions:

Prostate Gland

A gland in male mammals surrounding the urethra below the bladder that secretes fluid to nourish and transport sperm.

Bladder

A membranous sac or receptacle for a secretion; the gallbladder, urinary bladder.

Claustrophobia

An abnormal fear of being in enclosed or confined places.

Enclosed Places

Areas or environments that are surrounded by barriers such as walls or structures, limiting access and egress.