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Vikki [24]
4 years ago
12

Carter & Carter is considering setting up a regional lockbox system to speed up collections. The company sells to customers

all over the U.S., and all receipts come in to its headquarters in San Francisco. The firm's average accounts receivable balance is $2.5 million, and they are financed by a bank loan at an 11% annual interest rate. The firm believes this new lockbox system would reduce receivables by 20%. If the annual cost of the system is $15,000, what pre-tax net annual savings would be realized?
Business
1 answer:
FrozenT [24]4 years ago
7 0

Answer:

pre tax annual saving = 40000

Explanation:

given data

receivable balance = $2.5 million

loan = 11% annual interest rate

reduce receivables = 20%

annual cost of the system = $15,000

to find out

pre-tax net annual savings

solution

we know reduction in A/R = 2500000 × 20%

Reduction in A/R = $500000

and

annual saving with 11 % interest is = 55000

so pre tax annual saving is = annual saving - annual cost of system

pre tax annual saving = 55000 - 15000

pre tax annual saving = 40000

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Answer:

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For this retailer,

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The contribution margin per unit = selling price- variable cost

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3 0
3 years ago
5x - 3y = 8 <br>9 + 7y - 126​
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Answer:

x=7

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Explanation:

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5 0
3 years ago
A company uses the weighted average method for inventory costing. During a period, Department B finished and transferred 58,000
Anni [7]

Answer:

Option (B) is correct.

Explanation:

Given that,

During a period, Department B finished and transferred to Department C = 58,000 units

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=  58,000 units + (14,000 units × 60%)

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3 0
3 years ago
Which of the following is included in GDP? a) Cash gifts from relatives during the holidays b) Welfare payments received by some
krok68 [10]

Answer:

D)the cost of a dinner at a restaurant

Explanation:

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Therefore, Out of the given options, the only one that is included in GDP is "the cost of a dinner at a restaurant".

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Murrr4er [49]

Answer:

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Therefore, Casey who is pooling the results statistically of the several studies into a single analysis. So, Casey assigned to conduct or perform a meta - analysis.

5 0
3 years ago
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