Pharoah Company sells goods to Coronado Company during 2023. It offers Coronado the following rebates based on total sales to Coronado. If total sales to Coronado are 8,200 units, it will grant a rebate of 2%. If it sells up to 19,600 units, it will grant a rebate of 4%. It if sells up to 30,000 units, it will grant a rebate of 6%. In the first quarter of the year, Pharoah sells 9,800 units to Coronado, on account, at a sales price of $98,000. Based on past experience, Pharoah has sold over 40,000 units to Coronado, and these sales normally take place in the third quarter of the year.

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