UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

83. Correct answer b. Johnsen’s budgeted cash receipts total $684,500 as shown below.

September cash sales = ($800,000 x .3) = $240,000

September sales collections = ($800,000 x .7 x .2) = 112,000

August sales collections = ($650,000 x .7 x .5) = 227,500

July sales collections = ($600,000 x .7 x .25) = 105,000

Total cash collections $684,500

107