What is the maximum monthly charge cookie cutter

Reference no: EM1314836

Q. It takes Cookie Cutter Modular Homes, Inc., about six days to receive also deposit checks from customers. Cookie Cutter's management is considering a lockbox system to reduce the firm's collection times. It is expected which the lockbox system will reduce receipt also deposit times to four days total. Average daily collections are $131,000 also the required rate of return is 6 percent per yr. Assume 365 days per yr.

a) Illustrate what is the reduction in outstanding cash balances as a result of implementing the lockbox system? (Do not round intermediate calculations.) Cash balance reduction $

b) Illustrate what is the daily dollar return which could be earned on these savings? (Do not round intermediate calculations also round your final answer to 2 decimal places? (e.g., 32.16) Dollar return $

c-1) Illustrate what is the maximum monthly charge Cookie Cutter should pay for this lockbox system if the payment is due at the end of the month? (Do not round intermediate calculations also round your final answer to 2 decimal places? (e.g., 32.16)
Maximum monthly charge $

c-2) Illustrate what is the maximum monthly charge Cookie Cutter should pay for this lockbox system if the payment is due at the beginning of the month?

Reference no: EM1314836

Questions Cloud

Find the original cost : Find the original cost.

Draw a vector diagram : A space station, in the form of a wheel 133 m in diameter, rotates to provide an "artificial gravity" of 2.20 m/s2 for persons who walk around on the inner wall of the outer rim. Find the rate of the wheel's rotation in revolutions per minute that wi..

How much cash is available also you must meet a payroll : Elucidate how much cash is available also you must meet a payroll of $100,000 in 2 days. Where would you start.

What is the tension in cables : In a simple atom, the electrons making transitions between outermost energy levels and the innermost energy levels give rise to photons with the reddest colours.

What is the maximum monthly charge cookie cutter : Illustrate what is the maximum monthly charge Cookie Cutter should pay for this lockbox system if the payment is due at the beginning of the month.

Random sample of students : If the mean IQ of all Omega University students was equal to 115, and a small random sample of students was selected from the population whose mean IQ was 120, then this difference of 5 points would equal the:

How much work does the tension in the line do on fish : A fisherman reels in 15.0 of line while landing a fish, using the constant forward pull of 35.0. How much work does the tension in the line do on fish.

Calculating the length : Calculating the length.

Forbelts management wants to conclude : With profit maximization as a criterion, Forbelt's management wants to Conclude Elucidate how many motors should be produced at each plant also Elucidate how many motors should be shipped from each plant to each destination.

User Account

All Pages