Calculating Transactions Required Cow Chips, Inc., a large fertilizer distributor based in California, is planning to use a lockbox system to speed up collections form its customers located on the East Coast. A Philadelphia-area bank will provide this service for an annual fee of $25,000 plus 10 cents per transaction. The estimated reduction in collection and processing time is one day. If the average customer payment in this region is $4,800, how many customers each day, on average, are needed to make the system profitable for Cow Chips? Treasury bills are currently yielding 5 percent per year.