Tzunam Corp. is preparing its cash budget. It expects to have sales of $30,000 in January, $35,000 in February, and $30,000 in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March? a. $36,000.
b. $39,600.
c. $42,480.
d. $42,840.
e. $40,320.

The expected cash receipts for March is $32,000.

Note: The correct answer is $32,000 but this is not included in the option. Kindly confirm this from your teacher.

Explanation:

The expected cash receipts for March can be calculated as follows:

Cash received from sales in March = $30,000 * 20% = $6,000

Cash received from sales in February  = $35,000 * 40% = $14,000

Cash received from sales in January = $30,000 * 40% = $12,000

Therefore, we have:

Expected cash receipts for March = Cash received from sales in March + Cash received from sales in February + Cash received from sales in January = $6,000 + $14,000 + $12,000 = $32,000

answer; ///decision making under risk;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.