Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer this question ! 5. Your rm sells to retail customers nationwide. Your bank has just completed a lockbox study of your cash collection

please answer this question !

image text in transcribed
5. Your rm sells to retail customers nationwide. Your bank has just completed a lockbox study of your cash collection system. After a through study of your remittance information, they categorized your customers into 3 groups as shown below. Notice that the consultants expressed remittance data on an average daily basis assuming 30 days in a month. Your opportunity cost of funds is 10%. Using the complete enumeration model, determine which bank oers the lowest cost (hint: 1 bank is optimal) and the customer allocation among the chosen sites. Customer Average monthly Days of oat group remlt'tances Number Face value Bank A Bank B Bank C 1 50,000 $98 5 6 1 2 100,000 5 5 l 4 3 3 75,000 125 3 5 4 Variable processing $0.55 $0.40 $0.70 costs Fixed costs $350 $500 $250

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematics For Business

Authors: Stanley A Salzman, Charles D Miller, Gary Clendenen

8th Edition

0321357434, 9780321357434

More Books

Students also viewed these Finance questions