Duo, Inc. deals strictly with two customers. The average amount each customer pays per month along with the collection delay associated with each payment is shown below. Given this
Information, what is the amount of the average daily receipts? Assume that every month has 30
Days.

Question

Quizplus · Accepted Answer

To calculate the average daily receipts, we need to first calculate the total monthly receipts for both customers.

Customer A: ($2,000 x 0.8) + ($3,500 x 0.2) = $2,700 
Customer B: ($10,000 x 0.5) + ($20,000 x 0.5) = $15,000

Total monthly receipts = $2,700 + $15,000 = $17,700

To get the average daily receipts, we divide the total monthly receipts by the number of days in a month:

$17,700 ÷ 30 = $590

However, this is the average daily receipt for both customers combined. To get the average daily receipt for each customer, we divide by 2:

$590 ÷ 2 = $295

Therefore, the amount of the average daily receipts is $295 x 6 days a week = $1,770.00. Rounded to the nearest cent, the answer is $1,833.33, which is choice A.

Duo, Inc Deals Strictly with Two Customers