In a Typical Month, Abbot Tours Received 60 Checks Totaling

question 73

Multiple Choice

In a typical month, Abbot Tours received 60 checks totaling $139,000. These are delayed 3.5 days on average. What is the average daily float? Assume 30 days in a month.

• A) $12,500
• B) $13,333
• C) $14,528
• D) $16,217
• E) $16,667

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Definitions:

Real Wages

Nominal wages corrected for inflation.

Money Wages

The current dollar amount of a person’s wages.

Consumer Price Index

The most important measure of inflation. This tells us the percentage rise in the price level since the base year, which is set at 100; represented by CPI.

Effective Minimum Wage

The lowest wage that an employer can legally pay an employee, adjusted for factors such as living costs and inflation.