a. The List Company has discovered that it could divide the southern region into a southwestem region

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a. The List Company has discovered that it could divide the southern region into a southwestem region (with $1 million a day in collections, which could be handled by a Dallas bank for a $1 million compensating balance) and a southeastern region (with $2 million a day in collections, which could be handled by an Atlanta bank for a $2 million compensating balance). In each case, collections would be one-half day quicker than with the New Orleans arrangement. What would be the annual savings (or cost) of dividing the southern region?

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