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11. Klein's Tools is considering offering a cash discount to speed up the collection of accounts receivable. Currently the firm has an average collection period
11. Klein's Tools is considering offering a cash discount to speed up the collection of accounts receivable. Currently the firm has an average collection period of 63 days, annual sales are 31,000 units, the per-unit price is $37, and the per-unit variable cost is $26. A 1% cash discount is being considered. Klein's Tools estimates that 81% of its customers will take the 1% discount. If sales are expected to rise to 33,000 units per year and the firm has a 14% required rate of return, what minimum average collection period is required to approve the cash discount plan? days. (Round to The minimum average collection period required to approve the cash discount plan is two decimal places.)
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