On Average, Your Firm Receives 62 Checks a Day from Customers

question 100

Multiple Choice

On average, your firm receives 62 checks a day from customers. These checks, on average, are worth $39.90 each and clear the bank in 1.5 days. In addition, your firm disburses 38 checks a day with an average amount of $89.50. These checks clear your bank in 2 days. What is the average amount of the collection float?

• A)$2,473.80
• B)$3,401.00
• C)$3,710.70
• D)$5,101.50
• E)$6,802.00

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Definitions:

Characteristics

describe the distinct features or qualities that help in identifying, defining, or classifying subjects, objects, or concepts.

Utility-Maximizing Rule

An economic principle that states individuals allocate their income in a way that maximizes their total utility, based on the marginal utility per unit of price for goods or services.

Algebra

A branch of mathematics that deals with symbols and the rules for manipulating these symbols, representing quantities and expressing mathematical relationships.

Marginal Utility

The added satisfaction a consumer gains from consuming an additional unit of a good or service.