Question
In: Finance
Beta has an opportunity to automate some of the billing process so that customers can use...
Beta has an opportunity to automate some of the billing process so that customers can use a direct account deduction. Moving to an automated billing process is voluntary for customers and Beta does not know what percentage will move.
There are currently 100,000 customers. The cost of the billing process as currently constituted is $40,000 of annual fixed cost and $0.20 per bill. Automating the billing will result in a total of $50,000 of annual fixed cost, which is to say that some of the prior fixed cost will continue and Beta will need new software and equipment. Variable costs for any automated bill will drop to $0.04 per bill.
How many customers must switch to the automated billing process to break even with this opportunity?
Solutions
jeff jeffy answered 9 months agoRelated Solutions
How can Electronic Data Interchange (EDI) facilitate the billing and accounts receivable process?
How can Electronic Data Interchange (EDI) facilitate the billing
and accounts receivable process?
What is Beta and how can we use Beta to measure risk?
What is Beta and how can we use Beta to measure risk?
A project for improving a billing process has the following precedence relationships and activity times: Using...
A project for improving a billing process has the following
precedence relationships and activity times: Using the info below
calculate the slack for each activity. Which activities are on the
critical
path?
Activity
Activity Time (weeks)
Immediate Predecessor(s)
A
5
----
B
10
-----
C
6
A
D
14
B, C
E
9
B
F
5
D
G
3
E
H
6
F, G
A) What is Beta and how can we use Beta to measure risk. (B) Analyze the...
A) What is Beta and how can we use Beta to measure risk.
(B) Analyze the concept of the Security Market Line and how it
interacts with the Beta concept to determine an expected rate of
return.
(C) Provide an example of how you could use Beta to measure risk
as a financial manager.
Can you give some specific examples of organizations that might use each costing method (job, process...
Can you give some specific examples of organizations that might
use each costing method (job, process and activity based)? Would
there ever be a time when an organization might use more than
one?
In some states, the use of marijuana is now legal, so a majority of the citizens...
In some states, the use of marijuana is now legal, so a majority
of the citizens evidently regard it as morally acceptable. In other
states, however, the use of marijuana is illegal, so a majority of
the citizens in those states evidently regard it as morally
unacceptable. Furthermore, given that most states at this time
disapprove marijuana use, a majority of citizens in the country as
a whole likely regard it as morally unacceptable. The dilemma for
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In some states, the use of marijuana is now legal, so a majority of the citizens...
In some states, the use of marijuana is now legal, so a majority
of the citizens evidently regard it as morally acceptable. In other
states, however, the use of marijuana is illegal, so a majority of
the citizens in those states evidently regard it as morally
unacceptable. Furthermore, given that most states at this time
disapprove marijuana use, a majority of citizens in the country as
a whole likely regard it as morally unacceptable. The dilemma for
those who say...
2. In some states, the use of marijuana is now legal, so a majority of the...
2. In some states, the use of marijuana is now legal, so a
majority of the citizens evidently regard it as morally acceptable.
In other states, however, the use of marijuana is illegal, so a
majority of the citizens in those states evidently regard it as
morally unacceptable. Furthermore, given that most states at this
time disapprove of marijuana use, a majority of citizens in the
country as whole likely regard it as morally unacceptable. The
dilemma for those who...
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What are some of the conflicts between companies’ desire to
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those customers
What are some ways that a company can track accounts receivable to ensure that customers are...
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