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Question 5: The sales budget of Cambri Co includes the following sales volumes for one of the company's
products:
July150,900 units
August144,800 units
September164,800 units
The sales director estimates that 10% of customers will pay in the month of sale, with 70% paying in
the following month.
The remaining customers will take a further month's credit. All sales will be at $5.50 per unit, with
customers paying in the month of sale obtaining a 10% settlement discount.
What is the budgeted value of cash received from customers in September for sales of this product?
A. $758,362
B. $749,298
C. $805,046
D. $814,110
Correct Answer: C
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