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    The following is the budget for a new high tech product launched in July:

    July August

    Expected Sales in Units 2000 3000
    Selling price per unit 50 50
    Total Sales 100000 100000

    The actual sales were:

    July August
    Actual sales in units 1000 2500
    Selling price per unit 50 50
    Total Sales 50000 125000

    A. Create a schedule of cash collections for the budgeted sales for July and August. Assume that 80% of sales are collected in the month of sale and the remaining 20% of sales are collected the following month.

    b. What strategic considerations should Mary take into account? Explain.

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    Solution Preview

    The following is the budget for a new high tech product launched in July:

    July August

    Expected Sales in Units 2000 3000
    Selling price per unit 50 50
    Total Sales ...

    Solution Summary

    This solution is comprised of a detailed explanation to create a schedule of cash collections for the budgeted sales for July and August. Assume that 80% of sales are collected in the month of sale and the remaining 20% of sales are collected the following month.

    $2.19

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