Scare-2-B-U (S2BU) specializes in costumes for all occasions. The average price
ID: 2588749 • Letter: S
Question
Scare-2-B-U (S2BU) specializes in costumes for all occasions. The average price of each of its costumes is $300. For each occasion, S2BU receives a 20 percent deposit two months before the occasion, 40 percent the month before, and the remainder on the day the costume is delivered. Based on information at hand, managers at S2BU expect to make costumes for the following number of occasions during the coming months:
Required:
a. What are the expected revenues for S2BU for each month, April through September? Revenues are recorded in the month of the occasion.
b. What are the expected cash receipts for each month, April through July?
*********Don't worry the letter A. I already solve it . I really need help on the letter B, please. Thank You!*********************
April 55 May 30 June 15 July 40 August 45 September 100Explanation / Answer
b)
Feb
March
April
May
June
July
August
September
Occasions
55
30
15
40
45
100
Average price
300
300
300
300
300
300
Total price
55*300 = 16500
30*300 =9000
15*300 = 4500
40*300 = 12000
45*300 = 13500
100*300 = 30000
20% Deposit
16500*20% = 3300
9000*20% = 1800
4500*20%=
900
12000*20% =
2400
13500*20% = 2700
30000*30% =9000
0
0
40% Deposit
16500*40%= 6600
9000*40% = 3600
4500*40% = 1800
12000*40% = 4800
13500*40% =5400
30000*40% = 12000
0
40% Deposit
16500*40%= 6600
9000*40% = 3600
4500*40% = 1800
12000*40% = 4800
13500*40% =5400
30000*30% =9000
Cash receipts
11100
7800
9300
19200
Feb
March
April
May
June
July
August
September
Occasions
55
30
15
40
45
100
Average price
300
300
300
300
300
300
Total price
55*300 = 16500
30*300 =9000
15*300 = 4500
40*300 = 12000
45*300 = 13500
100*300 = 30000
20% Deposit
16500*20% = 3300
9000*20% = 1800
4500*20%=
900
12000*20% =
2400
13500*20% = 2700
30000*30% =9000
0
0
40% Deposit
16500*40%= 6600
9000*40% = 3600
4500*40% = 1800
12000*40% = 4800
13500*40% =5400
30000*40% = 12000
0
40% Deposit
16500*40%= 6600
9000*40% = 3600
4500*40% = 1800
12000*40% = 4800
13500*40% =5400
30000*30% =9000
Cash receipts
11100
7800
9300
19200
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