16. Collegiate Tuxedo rents apparel throughout the year. They have experienced non-payment by about 15% of

their customers with an average loss of $200. Collegiate wants to stem their losses by using an instant electronic

credit check on the customer. These checks will cost them $7 on each of the 1000 customers. The opportunity

cost is 1.5% for the credit period. Should they pursue the credit check?

A. No, because the $7000 cost is too high.

B. No, because a $200 loss is minor.

C. Yes, because the net gain is $30,000.

D. Yes, because the net gain is $23,000.

E. Yes, because the net gain is $193,000.