Zhang Industries Sells a Product for $700

Multiple Choice

Zhang Industries sells a product for $700.Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%.Zhang pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales in dollars.Assume 30% of Zhang's sales are for cash.The remaining 70% are credit sales;these customers pay in the month following the sale.Compute the budgeted cash receipts for June.

A) $282,520.
B) $196,000.
C) $201,880.
D) $280,000.
E) $285,880.