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In: Finance
Cow Chips, Inc., a large fertilizer distributor based in California, is planning to use a lockbox...
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Cow Chips, Inc., a large fertilizer distributor based in California, is planning to use a lockbox system to speed up collections from its customers located on the East Coast. A Philadelphia-area bank will provide this service for an annual fee of $13,000 paid at the end of the year plus 15 cents per transaction. The estimated reduction in collection and processing time is one day. Treasury bills are currently yielding 5 percent per year. |
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If the average customer payment in this region is $5,400, how many customers are needed, on average, each day to make the system profitable for the company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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jeff jeffy answered 2 years agoRelated Solutions
Cow Chips, Inc., a large fertilizer distributor based in California, is planning to use a lockbox...
Cow Chips, Inc., a large fertilizer distributor based in
California, is planning to use a lockbox system to speed up
collections from its customers located on the East Coast. A
Philadelphia-area bank will provide this service for an annual fee
of $8,000 paid at the end of the year plus 10 cents per
transaction. The estimated reduction in collection and processing
time is one day. Treasury bills are currently yielding 5 percent
per year.
If the average customer payment in...
Sophisticates, Inc., a distributor of jewelry throughout California, is in the process of assembling a cash...
Sophisticates, Inc., a distributor of jewelry throughout
California, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records:
•
All sales are on account. Sixty percent of customer accounts are
collected in the month of sale; 35 percent are collected in the
following month. Uncollectibles amounting to 5 percent of sales are
anticipated, and management believes that only 20 percent of the
accounts outstanding...
Sophisticates, Inc., a distributor of jewelry throughout California, is in the process of assembling a cash...
Sophisticates, Inc., a distributor of jewelry throughout
California, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records:
•
All sales are on account. Sixty percent of customer accounts are
collected in the month of sale; 30 percent are collected in the
following month. Uncollectibles amounting to 10 percent of sales
are anticipated, and management believes that only 20 percent of
the accounts outstanding...
Sophisticates, Inc., a distributor of jewelry throughout California, is in the process of assembling a cash...
Sophisticates, Inc., a distributor of jewelry throughout
California, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records:
•
All sales are on account. Sixty percent of customer accounts are
collected in the month of sale; 30 percent are collected in the
following month. Uncollectibles amounting to 10 percent of sales
are anticipated, and management believes that only 20 percent of
the accounts outstanding...
Sophisticates, Inc., a distributor of jewelry throughout California, is in the process of assembling a cash...
Sophisticates, Inc., a distributor of jewelry throughout
California, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records: • All sales are on account.
Sixty percent of customer accounts are collected in the month of
sale; 30 percent are collected in the following month.
Uncollectibles amounting to 10 percent of sales are anticipated,
and management believes that only 20 percent of the accounts
outstanding...
Multi-Screen TV, Inc., is a Cleveland i-based importer and distributor of large screen HDTVs for residential...
Multi-Screen TV, Inc., is a Cleveland i-based importer and
distributor of large screen HDTVs for residential and commercial
customers. Revenue and cost relations are as follows:
TR = $1000Q - .1Q2
TC = $43,500 +100Q + 0.4Q2
A. Calculate output, marginal revenue, marginal cost, average
cost, price, and profit at the average total cost-minimizing
activity level. (Hint - MC passes through the minimum point on the
ATC curve)
B. Calculate these values at the profit-maximizing activity
level.
C. Compare and...
The Safeparts Company, a California-based distributor of automobile parts, recently conducted an inventory at its Los...
The Safeparts Company, a
California-based distributor of automobile parts, recently
conducted an inventory at its Los Angeles facility that showed
inventory losses of $850,000. Concerned about the losses,
management at Safeparts sought immediate action. You are a partner
at Klein and Smith Loss Prevention Associates, a consulting firm.
Safeparts executives contact you for assistance. A meeting is
arranged. After competition with two other security and loss
prevention firms, Safeparts executives decide on a 2-month contract
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Bold Bodybuilders, Inc. is a large sporting goods store. It has become the exclusive distributor of...
Bold Bodybuilders, Inc. is a large sporting goods store. It has
become the exclusive distributor of the new bodybuilding equipment
called Geni. After carrying the equipment for a year, Joe Sabatini,
a manager of the supply chain, decided to analyze the company's
inventory policy for Geni. On the basis of the past year's record,
Joe has identified the following weekly demand data:
Weekly Demand Occurrence, Week
95 8
96 2
97 6
98 10
99 8
100 6
101 6...
Case Study: Heinkel-Fishbein, Inc. Heinkel-Fishbein is a large importer and distributor of robotic toys. The...
Case Study:
Heinkel-Fishbein, Inc.
Heinkel-Fishbein is a large importer and distributor of robotic
toys. The toys are stored in the warehouse and are shipped to a
several large retail chains at a unit price of $60. The retail
stores sell the toys at $99.95, or at discounted prices on sale
days. There is almost no possibility in the near future of changing
the prices at which Heinkel-Fishbein supplies the retail
stores.
Considering one toy, identified as SKU 2600,...
Sigma Company, a large manufacturer, is planning to sell an existing subsidiary and use the funds...
Sigma Company, a large manufacturer, is planning to sell an
existing subsidiary and use the funds to buy land and build new
factory. The proceeds of the sale are likely to be delayed, so the
Directors have estimated that 10 million € will be needed in 3
months’ time for a period of 6 months. Given this, the directors
have decided that a bank loan would be appropriate as a form of
finance rather than equity sources.
After checking that...
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