Lexicon Has a Daily Average Check Collections of $180,000 and It

question 51

Multiple Choice

Lexicon has a daily average check collections of $180,000 and it takes the firm 5 days before it can completely process those checks.An automated lockbox system that costs $33,000 a year would reduce the processing time by 2 days.Should Lexicon invest in this system if the opportunity cost of short-term funds is 12.3 percent?

• A)Yes, savings of $44,280
• B)Yes, savings of $33,420
• C)Yes, savings of $11,280
• D)No, loss of $10,860

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Definitions:

Eating Pattern

The habitual dietary habits, choices, and behaviors of an individual or group.

Modeling

A method used in psychology and education where individuals learn through observation and imitation of others' behaviors, attitudes, or emotional expressions.

Reinforcing

A process in operant conditioning that increases the likelihood of a behavior by providing a consequence that is desirable.

Shaping

A method of teaching new behaviors by rewarding closer and closer approximations to the desired behavior.