What Is the Annual Gain to a Firm with Daily

question 26

Multiple Choice

What is the annual gain to a firm with daily sales of $30,000 if it can speed up collections by 3 days,assuming an annual opportunity cost of funds of 8%?

• A) $2,400 gain
• B) $7,200 gain
• C) $30,000 gain
• D) $90,000 gain

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Definitions:

BPI (Business Process Improvement)

A systematic approach to help an organization optimize its underlying processes to achieve more efficient results.

Operational Excellence

The philosophy of making continuous improvements in operations to enhance quality, efficiency, and customer satisfaction.

Mass Customization

A business strategy that combines the efficiency of mass production with the personalization aspects of custom-made goods or services.

Make-to-order

A manufacturing process in which products are created after a confirmed order is received, allowing for customization.