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Assuming there are no other significant considerations,a product line with a negative contribution margin should be dropped.
Collection Float
The time period between when a payment is made by a customer and when the funds become available in the company's account.
Mail Float
The time gap between when a payment is sent via mail and when it is received and processed, affecting the time when the funds become available.
Processing Float
The time difference between when a check is written and when it is actually cleared and funds are deducted from the account.
Availability Float
The time gap between when a deposit is made into a bank account and when the funds become available for use.
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