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Tesla automotive Inc. is planning to use a lockbox system to speed up collections from its customers. The American bank has agreed to provide this
Tesla automotive Inc. is planning to use a lockbox system to speed up collections from its customers. The American bank has agreed to provide this service to Tesla for a yearly fee of $5,000 which will be paid at year-end plus $0.15 per transaction. The expected reduction in collection and processing time is 1 day. The yield on T-bill is currently 5% per year. If the average customer payment is $6,700, approximately how many customers are needed, on average, each day to make the system profitable for the company
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