Assume the Following Facts About a Firm If Sales Are Evenly Distributed Throughout the Year, What Is

question 88

Multiple Choice

Assume the following facts about a firm: $\begin{array}{ll}\text { Projected selling price per urit } & \$ 3.70 / \text { unit } \\\text { Projected monthly urit sales } & 300,000 \text { urits } \\\text { Typical receivables balance } & 1.5 \text { months of sales }\end{array}$ If sales are evenly distributed throughout the year, what is the next year's projected ending accounts receivable balance?

• A) $1,665,000
• B) $138,750
• C) $1,110,000
• D) none of the above

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Definitions:

Wholesaler-sponsored

Pertains to promotional activities or programs initiated by wholesalers to boost the demand for certain products among retailers.

Franchise System

A method of distributing products or services involving a franchisor, who establishes the brand's trademark or business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.

Channel Conflict

A situation where there is discord or competition among channel partners such as manufacturers, wholesalers, and retailers, often due to overlapping territories or conflicting interests.

Channel Member

A participant in the marketing channel, such as a retailer or distributor, through which goods and services flow from producers to consumers.