### What is the maximum monthly charge cookie cutter

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Q. It takes Cookie Cutter Modular Homes, Inc., about six days to receive also deposit checks from customers. Cookie Cutter's management is considering a lockbox system to reduce the firm's collection times. It is expected which the lockbox system will reduce receipt also deposit times to four days total. Average daily collections are \$131,000 also the required rate of return is 6 percent per yr. Assume 365 days per yr.

a) Illustrate what is the reduction in outstanding cash balances as a result of implementing the lockbox system? (Do not round intermediate calculations.) Cash balance reduction \$

b) Illustrate what is the daily dollar return which could be earned on these savings? (Do not round intermediate calculations also round your final answer to 2 decimal places? (e.g., 32.16) Dollar return \$

c-1) Illustrate what is the maximum monthly charge Cookie Cutter should pay for this lockbox system if the payment is due at the end of the month? (Do not round intermediate calculations also round your final answer to 2 decimal places? (e.g., 32.16)
Maximum monthly charge \$

c-2) Illustrate what is the maximum monthly charge Cookie Cutter should pay for this lockbox system if the payment is due at the beginning of the month?

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