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.

What is the firms average accounts receivable balance?

If the variable cost of each product is 60% of sales, what is the average investment in accounts receivable?

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?