High Brow Express Deals Strictly with Two Customers

question 33

Multiple Choice

High Brow Express deals strictly with two customers. The payment from Customer A averages $537,400 and has a collection delay of three days. Customer B's average payment is $737,500 and has a one-day delay. What is the weighted average delay assuming every month has 30 days?

• A) 1.79 days
• B) 1.62 days
• C) 2.02 days
• D) 2.07 days
• E) 1.84 days

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Definitions:

Established Corporations

Corporations that have been in existence for a considerable period and have a stable position in the market, often characterized by a wide customer base and significant assets.

Interest-Rate Cost-of-Funds Curve

A graphical representation showing the relationship between the interest rates on loans and the total amount of funds loaned by banks.

MB = MC Decision Framework

A decision-making framework where optimal resource allocation occurs when marginal benefits (MB) equal marginal costs (MC).

Marginal Cost Element

An increase in total cost that results from producing one additional unit of a good or service.