Chapter 2.11, Problem 4Q

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Rivana Co. has a beginning receivables balance on March 1 of $1,280. Sales for March through June are $790, $860, $1,150, and $2,050, respectively. The accounts receivable period is 30 days. What is the amount of the May collections? Assume a year has 360 days.

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If there is excess capacity, which model is the most profitable to produce?

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