Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 11. klein's tools is considering offering a cash d

11. Klein's Tools is considering offering a cash discount to speed up the collection of...

60.2K

Verified Solution

Question

Accounting

image

11. Klein's Tools is considering offering a cash discount to speed up the collection of accounts receivable. Currently the firm has an average collection period of 63 days, annual sales are 31,000 units, the per-unit price is $37, and the per-unit variable cost is $26. A 1% cash discount is being considered. Klein's Tools estimates that 81% of its customers will take the 1% discount. If sales are expected to rise to 33,000 units per year and the firm has a 14% required rate of return, what minimum average collection period is required to approve the cash discount plan? days. (Round to The minimum average collection period required to approve the cash discount plan is two decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Use the graph of the function to answer each question 2 x 2 f x...

Calculus
Q

Use the Laplace transform to solve the following initial value problem, y?? ? y? ? 30y ?=?...

Basic Math
Q

1) The number of times that student takes an A class, X(X has a line under)...

Statistics
Q

  NH4CIO4 is the solid rocket fuel used by the U.S Space Shuttle. It reacts with...

Chemistry
Q

to what extent do we continue to change and develop during adulthood? Which capacities appear to...

Psychology
Q

In shown system strings and pulley are frictionless and massless Block A is moving downward...

Physics
Q

the graph behavior a A X y b A X y 1x C Tright Then...

Algebra
Q

Please help me i will give good rating Date July Business Transactions...

Accounting
Q

Waterloo Co. sells product P-14 at a price of $48 a unit. The per-unit cost...

Accounting
Q

Question 1: Imagine the organization you are working for is considering investing in one of...

Accounting
Q

Under Armour's footwear unit has been suffering recently. Under Armour's management decided to test the...

Accounting
Q

Rentz Corporation is investigating the optimal level of current assets for the coming year. Management...

Finance