Question

Honest Joe Corp. reported annual sales of $17,500,000. In the past Honest Joe's customers have paid within an average of 35 days. Honest Joe's management is considering allowing customers to pay in 40 days. Honest Joe's average daily sales are _________________.

Answer 1

Honest Joe Corp's average daily sales is $500,000.

Step-by-step explanation:

To calculate the average daily sales, we need to divide the annual sales by the number of days. In this case, we divide $17,500,000 by the average number of days it takes for customers to pay, which is 35 days.

Average daily sales = $17,500,000 / 35 = $500,000

Therefore, Honest Joe Corp's average daily sales is $500,000.