Reference no: EM132034904
Question :
Drugs 'R US operates a mail order pharmaceutical business in San Francisco. The firm receives an average of $325, 000 in payments per day. On average, it takes four days from the time customers mail their checks until the firm receives them. The company is considering establishing a lockbox system, in which customers' payments would be sent to nearby banks (local in terms of the purchasers) instead of directly to San Francisco. Banks in the lockbox locations would then wire the daily receipts to a single (concentration) bank.
The lockbox system, which would consist of ten local depository banks and a concentration bank, would cost Drugs 'R US $6, 500 per month. Under this system, customers' checks would be received at the lockbox locations one day after they are mailed, and the daily total would be wired to the concentration bank at a cost of $9.75 each.
Assume the firm could earn 10 percent on short term investments; further assume 260 working days, and hence 260 transfers from each lockbox location per year.
What is the total annual cost of operating the lockbox system?
What is the dollar benefit of the system to Drugs 'R US?
Should the firm initiate the lockbox system?
How will you calculate retailer selling price
: Afterwards, the retailers mark up by 33.33% on the wholesaler selling price. In this instance, how will you calculate retailer selling price?
|
What was the rate of return for the bond over the past year
: Two years ago, the price of a bond was 1,056.58 dollars, and one year ago, the price of the bond was 1,099.16 dollars.
|
What does social responsibility mean to a company
: What does social responsibility mean to a company? Why is social responsibility important?
|
What is the cost per order in position 2
: Questions A) What is the cost per order in position 2? B) What is the cost per order in position 1?
|
What is the dollar benefit of the system to drugs r us
: What is the total annual cost of operating the lockbox system? What is the dollar benefit of the system to Drugs 'R US?
|
Explain hierarchy of needs
: Explain hierarchy of needs and provide examples of one or more products that enable you to satisfy each of the four levels of need?
|
What is the economic meaning of a recession
: What is the economic meaning of a recession? · A brief discussion of fiscal policies · A brief discussion of monetary policies.
|
How does an s corporation shareholders basis effect
: What are the disadvantages of owning investment real estate in an S corporation when compared to a partnership?
|
Create a report for CEO or a public policymaker
: The audience for this report is an industry decision-maker, such as your supervisor or CEO, or a public policymaker, such as a politician or bureaucrat
|