What would be the maximum variable cost you would accept

Assignment Help Accounting Basics
Reference no: EM133177290

Question - The firm receives an average of 6590 remittances a month with an average face value of $10,000. The total monthly cost for the current cash collection system is $40,000. A lockbox system would have a total of 3 days of float. The system charges a variable cost per item and monthly fixed cost of $775. The opportunity investment rate is 5 percent. What would be the maximum variable cost you would accept?

Reference no: EM133177290

Questions Cloud

Main components necessary for a market to occur : Discuss the main components necessary for a market to occur. Discuss a market you have recently participated in, either professionally or personally.
Describe the use of an intersectional lens : Describe the use of an intersectional lens to explain social locations and how they are present, perceived and influenced in the termination process
Find source of attitude and behavior : If we want to anticipate certain behavior, we need first to assess personality as it is the source of attitude and behavior, Do you agree or disagree and why?
Describe the components of the team-building cycle : Describe the components of the team-building cycle and why it is important to understand each phase. In addition, select one of the six stages
What would be the maximum variable cost you would accept : The firm receives an average of 6590 remittances a month with an average face value of $10,000. What would be the maximum variable cost you would accept
Which tips covered in video did you find most interesting : What test taking strategies do you currently use to help you prepare for exams?
ADMN 1016 Introduction to Canadian Business Assignment : ADMN 1016 Introduction to Canadian Business Assignment Help and Solution, Algoma University - Assessment Writing Service
What net gain should be reported for discontinued operations : Disregarding income taxes, what net gain (loss) should be reported for discontinued operations in Greer's Year 1 and Year 2 income statements
What will your laundry costs for the year be : Laundry services are a semi-fixed cost for your business.. What will your laundry costs for the year be if your income for the next year is £6.8 million

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd