1. Your firm 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 offers the lowest cost (hint: 1 bank is optimal) and the customer allocation among the chosen sites.

Customer group	Average monthly remittances		Days of float
	Number	Face value	Bank A	Bank B	Bank C
1	50,000	$98	5	6	1
2	100,000	55	1	4	3
3	75,000	125	3	5	4
Variable processing costs			$0.55	$0.40	$0.70
Fixed costs			$350	$500	$250