A mail-order firm processes 4,700 checks per month. Of these, 60 percent are for $37 and 40 percent are for $69. The $37 checks are delayed two days on average; the $69 checks are delayed three days on average. Assume 30 days in a month.

a-1	What is the average daily collection float? (Do not round intermediate calculations.)

Average daily collection float

$

a-2	How do you interpret your answer? (Do not round intermediate calculations.)

On average, there is $ that is (Click to select)uncollectedcollected and (Click to select)availablenot available to the firm.

b-1	What is the weighted average delay? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Weighted average delay

days

b-2	Calculate the average daily float. (Do not round intermediate calculations.)

Average daily float

$

c.	How much should the firm be willing to pay to eliminate the float? (Do not round intermediate calculations.)

Maximum payment

$

d.	If the interest rate is 6 percent per year, calculate the daily cost of the float. (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Daily cost of the float

$

e.	How much should the firm be willing to pay to reduce the weighted average float to 2 days? (Do not round intermediate calculations.)

Maximum payment

$