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

Question

Business

Peter

18 October, 20:27

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

+4

Answers (1)

Know the Answer?

Teresa Hartman · Answer 1

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