Crimson Plumbing Supplies expects total sales of $9,000,000 this year.Ten percent of the company's sales are paid in cash; credit sales are usually paid by check.The average check size is $3,000.Second National Bank is offering the company a lock-box system.The fees are $800 per month plus $.60 per check.Short-term marketable securities are currently earning 8 percent per year.What reduction in check collection time is necessary for Carrollton Plumbing Supplies to be neither better nor worse off from adopting the proposed system? Use a 365-day year.

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The Answer of Crimson Plumbing Supplies expects total sales of $9,000,000 this year.Ten percent of the company's sales are paid in cash; credit sales are usually paid by check.The average check size is $3,000.Second National Bank is offering the company a lock-box system.The fees are $800 per month plus $.60 per check.Short-term marketable securities are currently earning 8 percent per year.What reduction in check collection time is necessary for Carrollton Plumbing Supplies to be neither better nor worse off from adopting the proposed system? Use a 365-day year.

Crimson Plumbing Supplies Expects Total Sales of $9,000,000 This Year