1 Leon Dung SA, a large fertilizer distributor based in the north of Spain, is planning to...
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1 Leon Dung SA, a large fertilizer distributor based in the north of Spain, is planning to speed up collections from its customers located in the Castille y Leon region. A Vallidolid-area bank will provide this service for an annual fee of €25,000 plus 10 cents per transaction. The estimated reduction in collection and processing time is one day. If the average customer payment in this region is €5,500, how many customers each day, on average, are needed to make the system profitable for Leon Dung? Treasury bills are currently yielding 5 per cent per year. (40 marks)
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