A Company Collects 60% of Its Sales During the Month

question 17

Multiple Choice

A company collects 60% of its sales during the month of the sale, 30% one month after the sale, and 10% two months after the sale. The company expects sales of $10,000 in August, $20,000 in September, $30,000 in October, and $40,000 in November. How much money is expected to be collected in October?

• A) $25,000
• B) $15,000
• C) $35,000
• D) None of the above

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Definitions:

Industry Entry

The act of beginning or entering into a specific market or field of business.

Accounting Profit

The net income for a company after all expenses have been deducted from total revenue, following standard accounting practices.

Total Revenue

Total Revenue refers to the total receipts from sales of goods and services over a given period, calculated as the quantity sold multiplied by the price.

Economic Profit

The gap between the money made from sales and the forgone benefits of the inputs employed.