Cow Chips, Incorporated, a large fertilizer distributor based in California, is planning use a lockbox system to speed up collections from its customers located on the Ea Coast. A Philadelphia-area bank will provide this service for an annual fee of $6,500 pl 10 cents per transaction. The estimated reduction in collection and processing time one day. Treasury bills are currently yielding 4 percent per year, and there are 365 da per year. If the average customer payment in this region is $2,900, how many customers ear day, on average, are needed to make the system profitable for Cow Chips? (Do n round intermediate calculations and round your answer to 2 decimal places. 32.16.)
Cow Chips, Incorporated, a large fertilizer distributor based in California, is planning use a lockbox system to speed up collections from its customers located on the Ea Coast. A Philadelphia-area bank will provide this service for an annual fee of $6,500 pl 10 cents per transaction. The estimated reduction in collection and processing time one day. Treasury bills are currently yielding 4 percent per year, and there are 365 da per year. If the average customer payment in this region is $2,900, how many customers ear day, on average, are needed to make the system profitable for Cow Chips? (Do n round intermediate calculations and round your answer to 2 decimal places. 32.16.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![$19-12 Calculating Transactions Required [LO2]
Cow Chips, Incorporated, 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 $6,500 plus
10 cents per transaction. The estimated reduction in collection and processing time is
one day. Treasury bills are currently yielding 4 percent per year, and there are 365 days
per year.
If the average customer payment in this region is $2,900, how many customers each
day, on average, are needed to make the system profitable for Cow Chips? (Do not
round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Number of customers
32.65 per day](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf7465a1-1f06-4ade-b6d3-6ab1782d9bd3%2Fad730b70-1c0b-42e2-978b-3c5840678769%2Fhkx1ahs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:$19-12 Calculating Transactions Required [LO2]
Cow Chips, Incorporated, 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 $6,500 plus
10 cents per transaction. The estimated reduction in collection and processing time is
one day. Treasury bills are currently yielding 4 percent per year, and there are 365 days
per year.
If the average customer payment in this region is $2,900, how many customers each
day, on average, are needed to make the system profitable for Cow Chips? (Do not
round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Number of customers
32.65 per day
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