Q15

Use the following information to calculate the total cost of collections:

Number of checks processed per year 400 Average face value per check = $7,000

-Average collection float = 4 days

-Annual opportunity cost rate = 8%

-Variable cost per check = $0.45

-Fixed cost = $16,000;

A)$17,634.79 b)$18,634.79 c)$19,634.79 d)$20,634.79 e)None of the above.