Harper Corp

question 99

Multiple Choice

Harper Corp.'s sales last year were $395,000,and its year-end receivables were $42,500.Harper sells on terms that call for customers to pay 30 days after the purchase,but many delay payment beyond Day 30.On average,how many days late do customers pay? Base your answer on this equation: DSO-Allowed credit period = Average days late,and use a 365-day year when calculating the DSO.

• A) 7.95
• B) 8.37
• C) 8.81
• D) 9.27
• E) 9.74

---

Definitions:

Private Good

A product or service that is consumed by an individual and cannot be used simultaneously by another individual.

Marginal Rate of Substitution

The rate at which a consumer can substitute one good for another while maintaining the same level of utility or satisfaction.

Hunting Lodge

A place of accommodation often located in remote areas for people engaging in hunting or seeking rustic outdoor experiences.

Pure Public Good

A good that is non-excludable and non-rivalrous, meaning its use by one individual does not reduce its availability to others and cannot be withheld from those who do not pay for it.