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Acme Co. is forecasting sales of between 50-60 thousand cat litter boxes in the next year, at an average wholesale price of $20 per unit.
Acme Co. is forecasting sales of between 50-60 thousand cat litter boxes in the next year, at an average wholesale price of $20 per unit. They will offer credit terms of 2/10, net 50. Historically, about 60% of Acme's customers take the discount. If the customers are rational and don't typically pay late, what is your estimate for Acme's average collection period?
A. 10 days
B. 23 days
C. 26 days
D. 34 days
E. Impossible to estimate based on information provided.
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