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Question - B Side Productions is a manufacturer of cheap scooters. Actual sales for the quarter just ended are as follows:
October
November
December
Sales
1,600,000
2,000,000
4,300,000
30% of all sales are cash sales with the remaining 70% being on credit. Of the credit sales 25% are collected in the month of sale, 60% are collected in the month after the sale and 15% is collected 2 months after the sale.
Calculate the cash collections for the month of December.
If management wanted to increase its income from this product by 10% , how many additional units would have to be sold to reach this income level.
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