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Total sales of a product.

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Elm Company makes a product that has peak sales in September of each year. The company has prepared a sales budget for the third quarter of 2003, as shown below.
July August September

Budgeted sales $500,000 $600,000 $750,000

The company is in the process of preparing a cash budget for the third quarter and must determine the cash collections by month. Collections on sales are expected to be as follows.

70% in the month of sale
20% in the month following the month of sale
8% in the second month following the month of sale
2% uncollictible

The accounts receivable balance as of June 30 is $195,000, of which $45,000 represents uncollected May sales and $150,000 represents uncollected June sales.

a. What were the total sales for May and June?
b. What are the expected cash collections for each month of the third quarter.

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The question mentions that the uncollected sales proceeds for May are 45,000 so the total sales of May are 100/10 x 45,000 because this is 10% of the total sales. So May sales = $450,000.
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Tablet Scenario- CVP Analysis

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You analyze the results using CVP and develop your complete four year strategy. You decide to make notes about your analysis and your reasoning process; just in case you have to do this again (You are praying that you can finally move ahead this time when you get to 2016.)

You finish your report that shows your strategy that you are going to use these next four years during Time Warp 2. And stop and take a big breath before you move ahead into 2012.
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Do not run the simulation. You develop a revised strategy and make a case for this new strategy using analysis and relevant theories.
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The key aspects of this assignment that should be covered and taken into account in preparing your paper include:
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Use the CVP Calculator and review the PowerPoint that explains CVP and provides some examples.

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Present your analysis professionally making strategic use of tables, charts and graphs.

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