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Project 1 Problem 3

Project 1 Problem 3 - $40.88 showing that on average check...

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After analyzing the Consolidated Foods Inc.’s data on check, cash, and credit card usage, I have found that it was not beneficial for the company to allow credit card purchases. The reason why they allowed credit card usage in the first place was to try and encourage large purchases. However, after looking at the average purchases for cash, credit, and check, I came to find that check purchases were on average higher than credit purchases. Check purchases were on average $42.73, while credit purchases were on average
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Unformatted text preview: $40.88, showing that on average check payments were $1.85 higher than credit. Cash purchases were obviously lower, at $8.84. This analysis shows that customers are just as willing, if not more willing, to make large purchases without their credit cards. Consolidated Food Inc. probably wasted some money on paying credit card companies for the rights to use their cards, because customers were just as willing to use checks as they were credit cards. The company is worse off with their current credit card policy....
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