Fandango Company's Credit Terms Allow Its Customers to Pay Invoices

question 26

Multiple Choice

Fandango Company's credit terms allow its customers to pay invoices in 30 days. Practice has not followed policy and the collection period is at 45 days. If Fandango's receivables are $164,565 and the company can earn 12% on capital invested, what is the opportunity cost it is experiencing by not adhering to their collection policy?

• A) $19,747.80
• B) $6,582.60
• C) $13,165.20
• D) $61,437.60
• E) $8,776.80

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Definitions:

Allen-Bradley Controllers

Industrial control systems and PLCs manufactured by Rockwell Automation, known for their reliability and extensive use in various industries.

RSLogix

A programming software developed by Rockwell Automation for design and configuration of logic-based controllers such as PLCs.

RSLogix Software

A software application developed by Rockwell Automation for programming Allen-Bradley PLCs and control systems, used for developing and troubleshooting.