Mary has budgeted to sell the following units in the second quarter of the year:
April: 17,000 units
May: 20,000 units
June: 18,000 units
The units sell for $10 each. Half of the sales for cash and half are on credit.
Credit sales are collected as follows:
70% in the month of sale
30% in the month following the month of sale.
Compute cash receipts for May.
A. $200,000
B. $170,000
C. $95,500
D. $195,500
E. none of the above