1) based on the text  What does the text imply is thepositive return from "investing" in accounts receivables?

As is true of other current assets, accounts receivable shouldbe thought of as an investment. The level of accounts receivableshould not be judged too high or too low based on historicalstandards of industry norms, but rather the test should be whetherthe level of return we are able to earn from this asset equals orexceeds the potential gain from other investments. For example, ifwe allow our customers five extra days to clear their accounts, ouraccounts receivable balance will increase—draining funds frommarketable securities and perhaps drawing down the inventory level.We must ask whether we are optimizing our return, in light ofappropriate risk and liquidity considerations

2) Of the four explicit carrying costs, which wouldn't belinear? Also explain how that one could be linear over specificorder size ranges.

Carrying costs include interest on funds tied up in inventoryand the costs of warehouse space, insurance premiums, and materialhandling expenses. There is also an implicit cost associated withthe dangers of obsolescence or perishability and rapid pricechange. The larger the order we place, the greater the averageinventory we will have on hand, and the higher the carryingcosts.