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

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

Correct Answer:

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