Question

In: Accounting

A mail-order firm processes 5,800 checks per month. Of these, 70 percent are for $48 and...

A mail-order firm processes 5,800 checks per month. Of these, 70 percent are for $48 and 30 percent are for $80. The $48 checks are delayed three days on average; the $80 checks are delayed four days on average. Assume 30 days in a month. a-1. What is the average daily collection float? (Do not round intermediate calculations.) a-2. How do you interpret your answer? (Do not round intermediate calculations.) b-1. What is the weighted average delay? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-2. Calculate the average daily float. (Do not round intermediate calculations.) c. How much should the firm be willing to pay to eliminate the float? (Do not round intermediate calculations.) d. If the interest rate is 5 percent per year, calculate the daily cost of the float. (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) e. How much should the firm be willing to pay to reduce the weighted average float to 1.5 days? (Do not round intermediate calculations.)

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

A mail-order firm processes 5,000 checks per month. Of these, 70 percent are for $40 and...
A mail-order firm processes 5,000 checks per month. Of these, 70 percent are for $40 and 30 percent are for $72. The $40 checks are delayed three days on average; the $72 checks are delayed four days on average. Assume 30 days in a month. a-1. What is the average daily collection float? (Do not round intermediate calculations.) a-2. How do you interpret your answer? (Do not round intermediate calculations.) b-1. What is the weighted average delay? (Do not round...
a mail order firm processes 6 300 checks per month. of these, 70 percent are for...
a mail order firm processes 6 300 checks per month. of these, 70 percent are for $53 and 30 percent are for $85. the $53 checks are delayed two days on average; the $85 checks are delayed three days on average. assume 30 days in a month. a.1 what is the average daily collection float. a.2 how do you interpret your answer. b.1 what is the weighted average delay. b2. calculate the average daily float. c. how much should the...
A mail-order firm processes 6,000 checks per month. Of these, 70 percent are for $50 and...
A mail-order firm processes 6,000 checks per month. Of these, 70 percent are for $50 and 30 percent are for $82. The $50 checks are delayed three days on average; the $82 checks are delayed four days on average. Assume 30 days per month. a-1. What is the average daily collection float? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a-2. How do you interpret your answer? b-1. What is the weighted...
A mail-order firm processes 5,600 checks per month. Of these, 60 percent are for $46 and...
A mail-order firm processes 5,600 checks per month. Of these, 60 percent are for $46 and 40 percent are for $78. The $46 checks are delayed three days on average; the $78 checks are delayed four days on average. Assume 30 days per month. a-1. What is the average daily collection float? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)   Average daily collection float $    a-2. How do you interpret your answer?...
A mail-order firm processes 5,500 checks per month. Of these, 60 percent are for $42 and...
A mail-order firm processes 5,500 checks per month. Of these, 60 percent are for $42 and 40 percent are for $77. The $42 checks are delayed two days on average; the $77 checks are delayed three days on average. Assume 30 days in a month. a-1 What is the average daily collection float? a-2 How do you interpret your answer? b-1 What is the weighted average delay? b-2 Calculate the average daily float. c. How much should the firm be...
Lilliput, a one-product mail-order firm, buys its product for $55 per unit and sells it for...
Lilliput, a one-product mail-order firm, buys its product for $55 per unit and sells it for $153 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows.    LILLIPUT COMPANY Income Statement For The Month Ended December 31, 2011   Sales $ 1,530,000   Cost of goods sold 550,000      Gross profit 980,000   Expenses      Sales commissions (10%) 153,000      Advertising 246,000      Store rent 26,300        Administrative salaries 51,500      Depreciation 61,500      Other expenses 14,300   ...
A mail-order company claims that at least 60% of all orders are mailed within 48 hours....
A mail-order company claims that at least 60% of all orders are mailed within 48 hours. From time to time the quality control department at the company checks whether this promise is fulfilled. Recently the quality control department at this company took a sample of 400 orders and found that 208 of them were mailed within 48 hours of the placement of the orders. Testing at a 1% significance level, can you conclude that the company’s claim is true? Use...
A firm has two types of sales for one product: online and mail order. The firm...
A firm has two types of sales for one product: online and mail order. The firm understands these two types of sales to be substitutable. The firm's standard mix is 2 online sale(s) for every 7 mail order sale(s). Online sales bring in $20 each Mail order sales bring $5 each The firm's actual sales were 10,000 total units with 4,000 online sale(s) and 6,000 mail order sale(s). What is the firm's mix variance for sales? Round final answer to...
A firm has two types of sales for one product: online and mail order. The firm...
A firm has two types of sales for one product: online and mail order. The firm understands these two types of sales to be substitutable. The firm's standard mix is 3 online sale(s) for every 8 mail order sale(s). Online sales bring in $23 each Mail order sales bring $7 each The firm's actual sales were 10,000 total units with 4,000 online sale(s) and 6,000 mail order sale(s). What is the firm's mix variance for sales? NOTE: only input a...
The number of orders that come into a mail-order sales office each month is normally distributed...
The number of orders that come into a mail-order sales office each month is normally distributed with a population mean of 298 and a population standard deviation of 15.4. For a particular sample size, the probability is 0.2 that the sample mean exceeds 300. How big must the sample be?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT