The Model Company Is to Begin Operations in April

question 38

Multiple Choice

The Model Company is to begin operations in April.It has budgeted April sales of $30,000,May sales of $34,000,June sales of $40,000,July sales of $42,000,and August sales of $38,000.Note that 10% of each month's sales will represent cash sales;75% of the balance will be collected in the month following the sale,17% the second month,6% the third month,and the balance is bad debts.What is the amount of cash to be collected in the month of August?

• A) $40,106.
• B) $40,340.
• C) $38,036.
• D) $44,140.

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Definitions:

Diversified Market

A market strategy that involves a company extending its reach into several different lines of business in an effort to reduce risk.

All-benefits Approach

A marketing strategy that emphasizes communicating all the benefits of a product or service to potential customers to influence their purchasing decision.

Value Proposition

A statement that summarizes why a consumer should buy a product or use a service, highlighting the unique value it provides.

Resonating-focus CVP

A customer value proposition that strongly aligns with and appeals to the customers' needs and expectations, creating a significant impact.