Find the Break-Even Size of Wire Transfer If the Cost

question 13

Multiple Choice

Find the break-even size of wire transfer if the cost of wire transfer is $20, the daily interest rate is 0.02 percent and the reduction in float is three days.

• A)$1,000
• B)$25,000
• C)$33,333
• D)$100,000

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Labor Costs

The total expenses incurred by employing labor, including wages, salaries, and benefits.

Raw Materials

The basic material from which a product is made, often used in manufacturing and production processes.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales.