The Times-Picayune Is Searching for an Ideal Spotting Station for the Morning

question 8

Multiple Choice

The Times-Picayune is searching for an ideal spotting station for the morning paper. Neighborhoods, their location on an XY grid of the city, and morning volume are shown in the table. What is the location that will minimize the transportation costs for the newspaper? $$\begin{array} { | l | c | c | c | } \hline { \text { Customer } } & \text { Annual Volume } & \text { X-Coordinate } & \text { Y-Coordinate } \\\hline \text { Florida } & 250 & 3 & 7 \\\hline \text { Desire } & 125 & 7 & 5 \\\hline \text { Lafitte } & 178 & 1 & 3 \\\hline \text { Iberville } & 264 & 2 & 5 \\\hline \text { Guste } & 137 & 1 & 6 \\\hline \text { CJ Peete } & 55 & 1 & 4 \\\hline\end{array}$$

• A)Near (3.1,4.6)
• B)Near (4.3,5.8)
• C)Near (2.5,5.2)
• D)Near (6.4,2.5)

---

Definitions:

Accounts Receivable Period

Accounts Receivable Period is the average number of days it takes for a company to collect payment from its customers after a sale has been made.

Cash Cycle

The period of time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.

Inventory Turnover Rate

Inventory turnover rate measures how often a company sells and replaces its stock of goods during a certain period, indicating the efficiency of inventory management.

Collection Period

A financial metric that indicates the average number of days it takes a company to collect payments from its credit sales, essentially a detailed aspect of collection time with focus on receivables.