What Are the Expected Annual Savings from a Lock-Box System

question 103

Multiple Choice

What are the expected annual savings from a lock-box system that collects 150 checks per day averaging $500 each, and reduces mailing and processing times by 2.5 and 1.5 days, respectively, if the annual interest rate is 7%?

• A) $5,250
• B) $13,125
• C) $21,000
• D)$300,000

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Definitions:

Production Workers

Production workers are individuals involved in the manufacturing process, contributing to the creation of goods and products.

Base Pay

The initial rate of compensation an employee receives, not including benefits, bonuses, raises, or other forms of supplementary pay.

Executives

Senior-level managers within an organization who are responsible for making strategic decisions and overseeing the company's operations.

Contingent Workers

Workers who are hired on a non-permanent basis, such as freelancers, consultants, or temporary contract workers.