Hobart limited is planning to set up payment collection booths in the four districts of newyork....

 

Transcribed Image Text:

Hobart limited is planning to set up payment collection booths in the four districts of newyork. It is also considering the option of a centralized collection system. Using the table below 1. Decide what type of collection system hobard limited should go for. 2. Discuss what could be an issue in establishing a centralized collection system. + The number of remittance processed Average value of remittance Number of days to clear the check Annual opportunity cost Variable cost for each remittance The fixed cost of setup or management of system Common Decentralized data 2000 $2500 0.15 7 $0.25 $4200 Centralized 6 $0.2 $6150 Hobart limited is planning to set up payment collection booths in the four districts of newyork. It is also considering the option of a centralized collection system. Using the table below 1. Decide what type of collection system hobard limited should go for. 2. Discuss what could be an issue in establishing a centralized collection system. + The number of remittance processed Average value of remittance Number of days to clear the check Annual opportunity cost Variable cost for each remittance The fixed cost of setup or management of system Common Decentralized data 2000 $2500 0.15 7 $0.25 $4200 Centralized 6 $0.2 $6150

Answer rating: 100% (QA)

From the above data it is clear that the annual opp... View the full answer