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Bird's Eye Treehouses, Inc., a Kentucky company, has determined that a majority of its customers are located in the Penn
Posted: Sun Jul 03, 2022 12:53 pm
by answerhappygod
- Bird S Eye Treehouses Inc A Kentucky Company Has Determined That A Majority Of Its Customers Are Located In The Penn 1 (715.6 KiB) Viewed 14 times
Bird's Eye Treehouses, Inc., a Kentucky
company, has determined that a majority of its customers are located in the Pennsylvania area. It therefore is considering using a lockbox system offered by a bank located in Pittsburgh. The bank has estimated that use of the system will reduce collection time by two days. Based on the following information, should the lockbox system be adopted? Average number of payments per day Average value of payment Variable lockbox fee (per transaction) Annual interest rate on money market securities 400 $1,200 $.35 6.0% How would your answer change if there were a fixed charge of $6,000 per year in addition to the variable charge?