Zhang Industries Sells a Product for $700

question 124

Multiple Choice

Zhang Industries sells a product for $700.Unit sales for May were 400 and each month's sales are expected to grow by 3%.Zhang pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales in dollars.Assume 30% of Zhang's sales are for cash.The remaining 70% are credit sales; these customers pay in the month following the sale.Compute the budgeted cash receipts for June.

• A)$282,520.
• B)$196,000.
• C)$201,880.
• D)$280,000.
• E)$285,880.

---

Definitions:

Validity

Validity refers to the degree to which a test or measurement accurately reflects or assesses the intended specific concept or attribute.

Reliability

The extent to which a measurement is free from random error.

Acceptability

The degree to which a concept, action, or thing is regarded as suitable or satisfactory by a group or society.

Specificity

The degree to which something is precise, detailed, or strictly defined.