Spice It Up! Writes 57 Checks a Day with an Average

question 62

Multiple Choice

Spice it Up! writes 57 checks a day with an average amount of $289 each.These checks generally clear the bank in 2.7 days.In addition, the firm generally receives an average of $20,900 a day in checks that are deposited immediately.Deposited funds are available in an average of .5 days.What is the firm's net float?

• A)Net disbursement float of $36,318
• B)Net disbursement float of $34,027.10
• C)Net disbursement float of $34,750.30
• D)Net collection float of $36,318
• E)Net collection float of $34,027.10

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Definitions:

Product Variety

The range of different products or services offered by a company or available in a market.

Cost Economies

Refers to economies of scale where the average cost per unit of production decreases as the volume of production increases.

Horizontal Differentiation

Products differ in ways that make them better for some people and worse for others.

Vertical Differentiation

A product difference that, from everyone’s perspective, makes a product better than rival products.