Problem 12.10

Pacific Traders has annual sales of $2,317,000. The firms financial manager has determined that using a lockbox will reduce collection time by 2.5 days. If the firms opportunity cost on savings is 6.10 percent, what are the savings from using the lockbox? (Do not round intermediate calculations and final answer to 2 decimal places, e.g. 12.25.)

The savings from using the lockbox are $....... per year.