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Question 2: (1 point) Music Boxes sells a wind-up music box that plays holiday tunes. Sales for October through February are projected as follows: Historically, 25% of each month's sales are charged to credit cards and 75% are made on trade credit Credit card sales are collected in the month of sale, less a 2.5% transaction fee charged by the credit card companies. 70% of each month's sales trade credit sales are collected the month after sale. The remaining 30% are collected two months after sale. August and September credit sales were $30,000 and $36,000, respectively. Music Boxes purchases product from a Swiss manufacturer. Due to logistical risks, Music Boxes inventory policy is to have two months of sales (in units) in ending inventory at each month end. Music Boxes has 6,000 units in inventory at the end of September. Music Boxes pays the Swiss manufacturer 30 days after receipt of goods. Each music box costs $18.00. September purchases were $62,000. Music Boxes incurs variable SG\&A expense each month of 10% for commissions on gross sales $. In addition, Music Boxes has fixed monthly SG\&A expense of $20,000 including $3,000 of depreciation expense. All SG\&A expenses are paid in the month incurred. What is the projected total cash collected in the month of November? a) $75,450 b) $69,450 c) $72,000 d) $124,250 e) $86,000

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