Wilson Publishers Is Considering Implementing a Lockbox System That Is

question 76

Multiple Choice

Wilson Publishers is considering implementing a lockbox system that is expected to reduce average collection time by 2.5 days. On an average day, the company receives 1,327 checks with an average value of $49 each. The daily interest rate on Treasury bills is .011 percent. What is the anticipated amount of the daily savings if this system is implemented?

• A) $2.48
• B) $13.29
• C) $14.45
• D) $17.88
• E) $15.78

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Definitions:

Customer Orientation

A strategy in business aimed at recognizing and satisfying the demands and anticipations of clients.

Corporate Social Responsibility

A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders.

Managerial Accounting

The practice of identifying, measuring, analyzing, and interpreting accounting information for internal decision making.

Just-in-Time Manufacturing

A manufacturing approach aimed at enhancing a company's investment returns by minimizing both the inventory in process and the related holding expenses.