​Whitmer Inc

question 12

Multiple Choice

​Whitmer Inc.sells to customers all over the U.S.,and all receipts come in to its headquarters in New York City.The firm's average accounts receivable balance is $2.5 million,and they are financed by a bank loan at an 11% annual interest rate.The firm is considering setting up a regional lockbox system to speed up collections,and it believes this would reduce receivables by 20%.If the annual cost of the system is $15,000,what pre-tax net annual savings would be realized?

• A)​$29,160
• B)​$32,400
• C)​$36,000
• D)​$40,000
• E)​$44,000

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Definitions:

Unintended Changes

Alterations that occur without deliberate planning or goal-setting, often unexpectedly affecting environments or systems.

Ethical Guideline

Principles designed to help professionals conduct their work in a morally appropriate manner, ensuring the welfare of those involved.

American Psychological Association

A leading scientific and professional organization representing psychology in the United States, dedicated to advancing the creation, communication, and application of psychological knowledge to benefit society and improve people's lives.

Deception

The act of misleading or deceiving someone by concealing or misrepresenting the truth.