1 answer

Hi can someone please let me know if I am on the right track, this problem is not from a

Question:

Hi can someone please let me know if I am on the right track, this problem is not from a book. The answer I got is D. because all of the solutions I am coming up with are higher than 35,000. Here is the problem:
A company collects 60% of its sales during the month of the sale, 30% one month after the sale, and 10% two months after the sale. The company expects sales of $10,000 in August, $20,000 in September, $30,000 in October, and $40,000 in November. How much money is expected to be collected in October?
a. $25,000
b. $15,000
c. $35,000
d. None of the above
Thank you

Answers

"A company collects 60% of its sales during the month of the sale" ___ October sales are 30,000 ___ so the company collects 18,000 in Oct., from Oct. "30% one month after the sale" ___ September sales are 20,000 ___ so the company collects 6,000 in Oct., from Sept. "10% two months after the sale" ___ August sales are 10,000 ___ so the company collects 1,000 in Oct., from Aug. the company collects a total of 25,000 in October (18000 + 6000 + 1000).

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