Quattro Began Operations in April of This Year

question 55

Multiple Choice

Quattro began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for April?

• A) $18,000.
• B) $21,000.
• C) $60,000.
• D) $65,000.
• E) None of the other answers are correct.

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Definitions:

Total Output

The total quantity of goods and services produced in an economy over a specified period.

Labor Force

The total number of people who are employed or actively seeking employment in an economy.

Union Membership

Individuals who belong to a union, an organization formed for the purpose of representing its members' interests in various employment matters.

Labor Force

The total number of people who are eligible, willing, and able to work, including both the employed and the unemployed.