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

76. Correct answer a. Tip-Top’s first quarter collections total $811,000 as shown below.

Collectible sales first quarter = $855,000 x .95 = $812,250

Daily collectible sales = $812,250 ÷ 90 days = $9,025

40 days of sales = $9,025 x 40 days = $361,000

Total collections = $361,000 + $450,000* = $811,000

*Net A/R from last quarter