The local drug store expects to have 30,000 sales transactions in November, amounting to $900,000 in sales revenue. The store expects that 60% of the sales transactions will be made using credit or debit cards. Although customers use credit cards and debit cards with differing transaction fees, the average transaction fee charged to the store amounts to $0.20 per transaction plus 3% of the amount charged.
1. How many sales transactions does the store expect will be paid by customers using credit or debit cards?
2. How much of November's sales revenue is expected to be paid by customers using credit or debit cards?
3. When budgeting for November's operating expenses, how much should the store expect to incur in credit and debit card transaction fees?
4. Assuming the credit and debit card companies process the deposit the same day as the transaction, how much cash does the store expect the credit and debit card companies to deposit in the store's bank account during the month of November?