Pronet Has Annual Sales of $724 Million from Its 600

question 75

Multiple Choice

Pronet has annual sales of $724 million from its 600 retail stores.Pronet can reduce its mail float by 2 days through the use of wire transfers.The annual cost of the wire transfers is expected to be $105,610.If Pronet's cost of short-term funds is 9.75 percent, should the change to wire transfers be made? Assume 365 days per year.

• A)No, loss of $247,340
• B)Yes, savings of $281,185
• C)Yes, savings of $474,582
• D)No, loss of $105,610

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Definitions:

Economic Activities

Economic activities encompass all actions that involve the production, distribution, and consumption of goods and services within an economy.

Ethical Conduct

The practice of behaving in a manner that is considered morally right, fair, and appropriate in a given context, especially in professional settings.

Manufacturing

The process of producing goods from raw materials through various processes, machinery, and operations, typically in a factory setting.

Retail Companies

Businesses that sell goods directly to consumers, typically operating from physical locations or through online platforms.