A newspaper has 500,000 subscribers who pay $4 per month for the paper. It costs the company

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A newspaper has 500,000 subscribers who pay $4 per month for the paper. It costs the company $200,000 to bill all its customers. Assume that the company can earn interest at a rate of 20% per year on all revenues.

Determine how often the newspaper should bill its customers. (Hint: Consider unpaid subscriptions as the inventoried good.)

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Practical Management Science

ISBN: 9781111531317

4th Edition

Authors: Wayne L. Winston, S. Christian Albright

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Question Posted: Oct 23, 2024 08:04 AM

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A newspaper has 500,000 subscribers who pay $4 per month for the paper. It costs the company

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Practical Management Science

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