Tritonic Is Considering Switching from Depository Transfer Checks to Using

question 60

Multiple Choice

Tritonic is considering switching from depository transfer checks to using wire transfers for sending funds from its local banks to its bank in Chicago. The cost of the wire transfer is $5.25 more than the cost of depository transfer checks. The change would reduce the total float by 3 days. Tritonic can earn 8.5% on the funds released through the more efficient transfer. If Tritonic has 30 local banks, what annual sales level would the firm require before the change to wire transfers would be profitable? (Assume there are 250 business days each year.)

• A) $391,544,118
• B) $56,360,294
• C) $84,286,029
• D) $1,149,750

Identify the effect of external factors, like court orders or legislative changes, on contracts.

Assess the legality and enforceability of contract terms in light of changing laws.

Evaluate the rights to payment under a contract despite partial unfulfilled obligations.

Understand the time limits for bringing a lawsuit for breach of contract.

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Definitions:

National Income

The total value of all goods and services produced by a country's economy over a specific period, including income received from abroad.

Indirect Business Taxes

Taxes imposed on goods and services that indirectly affect companies, such as sales tax or value-added tax.

Depreciation

The reduction in the value of an asset over time, often due to wear and tear or obsolescence.

Net Domestic Product

The total value of all goods and services produced within a country in a specific period, minus depreciation.