Accounts receivable and costs.Randolph Company currently has an average collection period of 45 days and annual credit sales of $1 million.Assume a 360-day year.

1. What is the firm's average accounts receivable balance?
2. If the variable cost of eachproduct is 60% of sales, what is the average investment in accounts receivable?
3. If the equal-risk opportunity cost of the investment in accounts receivable is 12%, what is the total opportunity cost of the investment in accounts receivable?