The Yardscape Corp Processes an Estimated 200,000 Checks Per Year

question 156

Multiple Choice

The Yardscape Corp processes an estimated 200,000 checks per year from its customers.Total revenue collected by check is $40,000,000.The average float time until the funds are credited to Yardscape's checking account is 6 days.For an extra cost of $ .06/check,Yardscape's bank will install a lock-box system that will reduce float time from 6 days to 2.5 days.If Yardscape earns 3.5% on its checking account,how much per check will Yardscape make if it uses the lock-box system?

• A) $.005
• B) $.006
• C) $.007
• D) $.008

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