Answer the Following Questions Using the Information Below:
the Following

question 200

Multiple Choice

Answer the following questions using the information below:
The following information pertains to Reef Producers Company:
$\begin{array} { l l c } \text { Month } & \text { Sales } & \text { Purchases } \\ \text { January } & \$ 48000 & \$ 16000 \\ \text { February } & \$ 64000 & \$ 23000 \\ \text { March } & \$ 80000 & \$ 38000 \end{array}$

- Cash is collected from customers in the following manner:

$\begin{array}{ll}\text { Month of sale } & 30 \% \\\text { Month following the sale } & 70 \%\end{array}$

$40 \%$ of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
- Labour costs are $20 \%$ of sales. Other operating costs are $\$ 15000$ per month (including $\$ 4000$ of depreciation) . Both of these are paid in the month incurred. The cash balance on 1 March is $\$ 4000$ . A minimum cash balance of $\$ 3000$ is required at the end of the month. Money can be borrowed in multiples of $\$ 1000$ .
-How much cash will be disbursed in total in March?

• A)$48 200
• B)$21 000
• C)$54 000
• D)$38 000

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers.

Benefits a Firm

The advantages or positive outcomes that accrue to a company, such as increased revenue, market share, brand loyalty, or competitive advantage.

Price Discrimination

The practice of selling the same product to different resellers (wholesalers, distributors, or retailers) or to the ultimate consumer at different prices; some, but not all, forms of price discrimination are illegal.

Dunkin' Donuts

An American multinational coffee and doughnut company, also known for its breakfast sandwiches.