On an Average Day,your Firm Receives $11,800 in Checks from Customers.These

question 93

Multiple Choice

On an average day,your firm receives $11,800 in checks from customers.These checks clear the bank in an average of 2.8 days.The applicable daily interest rate is 0.015 percent.What is the highest daily fee your firm should pay to completely eliminate the collection float? Assume each month has 30 days.

• A)$3.72
• B)$4.96
• C)$17.78
• D)$34.18
• E)$37.20

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Definitions:

Low Cost

A characteristic of goods, services, or processes that require minimal financial expenditure to acquire, maintain, or produce.

Internal Supply

Refers to the resources, capabilities, and competencies that are available within an organization, which can be utilized to achieve strategic objectives.

Retrained

The process of teaching employees new skills or refreshing their existing skills to meet the current demands of their job or prepare for new job roles.

HR Supply

The availability of qualified candidates, both internally and externally, to meet the human resources needs of an organization.