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linda_us, Master's Degree
Category: Multiple Problems
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Experience:  A tutor for Business, Finance, Accounts and other related topics.
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Problem 7.2 Drugs ‘R US operates a mail order pharmaceutical

Customer Question

Problem 7.2
Drugs ‘R US operates a mail order pharmaceutical business in San Francisco. The firm receives an average of $325,000 in payments per day. On average, it takes four days from the time customers mail their checks until the firm receives them. The company is considering establishing a lockbox system, in which customers’ payments would be sent to nearby banks (local in terms of the purchasers) instead of directly to San Francisco. Banks in the lockbox locations would then wire the daily receipts to a single (concentration) bank.
The lockbox system, which would consist of ten local depository banks and a concentration bank, would cost Drugs ‘R US $6,500 per month. Under this system, customers’ checks would be received at the lockbox locations one day after they are mailed, and the daily total would be wired to the concentration bank at a cost of $9.75 each.
Assume the firm could earn 10 percent on short term investments; further assume 260 working days, and hence 260 transfers from each lockbox location per year.
a. What is the total annual cost of operating the lockbox system?
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Submitted: 1 year ago.
Category: Multiple Problems
Customer: replied 1 year ago.
hello
Customer: replied 1 year ago.
is this fake
Customer: replied 1 year ago.
here us another part of the question
a. What is the dollar benefit of the system to Drugs ‘R US?
Insert your response here.b. Should the firm initiate the lockbox system?
Customer: replied 1 year ago.
can u at least let me know u r answering my questions?
Expert:  Manal Elkhoshkhany replied 1 year ago.

Hello,

I am working on your question, please advise your deadline.

P.S. I am not sure if you know that Just Answer offers a “Premium Service” where I can help you through email. Since this is an additional service, it involves an additional charge (but since I agree with your offer, I can charge you the lowest possible charge for this service - $5). If interested, I can make you an offer. Please advise.

Customer: replied 1 year ago.
Did you get an answer for the question? Are you telling it's going to cost more?
Customer: replied 1 year ago.
I'm not interested in communications through email.
Customer: replied 1 year ago.
My deadline is tomorrow, Wednesday.
Customer: replied 1 year ago.
This the complete question previously stated:
Problem 7.2
Drugs ‘R US operates a mail order pharmaceutical business in San Francisco. The firm receives an average of $325,000 in payments per day. On average, it takes four days from the time customers mail their checks until the firm receives them. The company is considering establishing a lockbox system, in which customers’ payments would be sent to nearby banks (local in terms of the purchasers) instead of directly to San Francisco. Banks in the lockbox locations would then wire the daily receipts to a single (concentration) bank.The lockbox system, which would consist of ten local depository banks and a concentration bank, would cost Drugs ‘R US $6,500 per month. Under this system, customers’ checks would be received at the lockbox locations one day after they are mailed, and the daily total would be wired to the concentration bank at a cost of $9.75 each.Assume the firm could earn 10 percent on short term investments; further assume 260 working days, and hence 260 transfers from each lockbox location per year.a. What is the total annual cost of operating the lockbox system?
Insert your response here.b. What is the dollar benefit of the system to Drugs ‘R US?
Insert your response here.c. Should the firm initiate the lockbox system?
Customer: replied 1 year ago.
Hello, dear. Can you inform me as to when you will have my answer ready
Customer: replied 1 year ago.
Just Answer is charging my account for your service and I have not received an answer to my question. This starting to look like a scam.
Customer: replied 1 year ago.
It's almost 24 hours and I have gotten a limited response from you. I'm about to as for a refund.
Customer: replied 1 year ago.
Your account is telling your online but still your not answering my questions

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