Problem:
Determer Enterprises has budgeted sales in units for the next four months as follows:
February 6800 units
March 5400 units
April 7200 units
May 4600 units
Determer's product sells for $20 each. Experience has shown that 10% of the company's sales are cash sales. The remaining credit sales are collected 40% in the month of sale and 55% in the month following the sale. The remaining 5% of credit sales are uncollectible. What is the budgeted total cast collections for April?
a) 119700
b) 66240
c) 131400
d) 117000
e) 72000