Step-by-step Instant Solution
from ORACLE 11g SQL class
To perform this activity, refer to the tables in the JustLee Books database.
Currently, JustLee Books bills customers for orders by enclosing an invoice
with each order when it?s shipped. A customer then has 10 days to send in the
payment. Of course, this practice has resulted in the company having to list
some debts as ?uncollectible.? By contrast, most other online booksellers receive
payment through a customer?s credit card at the time of purchase.
With this method, although payment would be deposited within 24 hours into
JustLee?s bank account, there?s a downside. When a merchant accepts credit cards
for payment, the company processing the credit card sales (usually called a
?credit card clearinghouse?) deducts a 1.5% processing fee from the total
amount of the credit card sale.
The management of JustLee Books is trying to determine whether the surcharge for
credit card processing is more than the amount usually deemed uncollectible when
customers are sent an invoice. Historically, the average amount that JustLee Books
has lost is about 4% of the total amount due from orders with a higher-than-average
amount due. In other words, usually customers who have an order with a larger-than-
average invoice total default on payments.
To determine how much money would be lost or gained by accepting credit card
payments, management has requested that you do the following:
1. Determine how much the surcharge would be for all recently placed orders if
payment had been made by a credit card.
2. Determine the total amount that can be expected to be written off as uncollectible
based on recently placed orders with an invoice total more than the average of
all recently placed orders.
Based on the results of these two calculations, you should determine whether the
company will lose money by accepting payments via credit card. State your findings
in a memo to management. Include the SQL statements for calculating the expected
surcharge and the expected amount of uncollectible payments.
Paper#9256705 | Written in 27-Jul-2016Price : $16