Varmit-B-Gone is a pest control service that operates in asuburban neighborhood. The company attempts to make service callsat least once a month to all homes that subscribe to its service.It makes more frequent calls during the summer. The number ofsubscribers also varies with the season. The number of subscribersand the average number of calls to each subscriber for the monthsof interest follow:
| Subscribers | Service calls (per subscriber) |
| March | | 450 | | | 0.6 | |
| April | | 550 | | | 0.8 | |
| May | | 1,500 | | | 1.4 | |
| June | | 1,650 | | | 2.6 | |
| July | | 1,650 | | | 3.3 | |
| August | | 1,400 | | | 2.8 | |
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The average price charged for a service call is $60. Of the servicecalls, 30 percent are paid in the month the service is rendered, 60percent in the month after the service is rendered, and 8 percentin the second month after. The remaining 2 percent isuncollectible.
Required:
What are Varmit-B-Gone’s expected cash receipts for May, June,July, and August?
