Reference: 20_02
Julia's Candy Co Cash Sales Are Normally 25% of Total Sales and All

question 6

Multiple Choice

Reference: 20_02
Julia's Candy Co. reports the following information from its sales account and sales budget:
$\begin{array}{llr}\text { Sales } & \text { May } & \$ 105,000 \\& \text { June } & 93,000 \\& & \\\text { Expected } & \text { July } & \$ 90,000 \\\text { Sales: } & & \\& \text { August } & 110,000 \\& \text { September } & 120,000\end{array}$
Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale.
-Based on the information from Julia's,the total amount of cash expected to be received from customers in September is:

• A) $30,000
• B) $82,500
• C) $112,500
• D) $120,000
• E) $202,500

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Definitions:

Production Levels

The quantity of goods or services produced by a company during a specific period, influenced by demand, capacity, and resource availability.

Responsibility Centre

A unit within an organization under the management's control, accountable for specific activities and associated costs, revenues, or investments.

Investment Centre

A business unit or segment which is responsible for its own revenues, expenses, and assets, and whose performance is measured by its return on investment.

Profit Centre

A profit centre is a distinct business unit or department within an organization that is responsible for generating its own revenue and managing its own costs to drive profitability.