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10 August, 08:53

High Brow Express deals strictly with two customers. The payment from Customer A averages $537,400 and has a collection delay of three days. Customer B's average payment is $737,500 and has a one-day delay. What is the weighted average delay assuming every month has 30 days?

A) 1.79 days

B) 1.62 days

C) 2.02 days

D) 2.07 days

E) 1.84 days

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Answers (1)
  1. 10 August, 11:22
    0
    The answer is E.

    Explanation:

    Total payment from customers is:

    $537,400 + $737,500

    = $1,274,900

    Weighted average delay from customer A is:

    ($537,400/$1,274,900) x 3

    =1.26 days

    Weighted average delay from customer B is:

    ($737,500/$1,274,900) x 1

    =0.58 day

    Therefore, total weighted average delay is:

    1.26 days + 0.58 day

    =1.84days
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