Acme Co
Subject:FinancePrice: Bought3
Acme Co. is forecasting sales of between 50-60 thousand cat litter boxes in the next year, at an average wholesale price of $20 per unit. They will offer credit terms of 2/10, net 50.
Historically, about 60% of Acme's customers take the discount. If the customers are rational and don't typically pay late, was is your estimate for Acme's average collection period?
- A. 10 days
- B. 23 days
- C. 26 days
- D. 34 days
- E. Impossible to estimate based on information provided.
