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NEW QUESTION: 1
A corporation has received proposals from several banks to establish a lockbox system to speed up receipts. The corporation receives an average of 700 checks per day averaging US $1,800 each, and its cost of short-term funds is 7% per year. Assuming that all proposals will produce equivalent processing results and using a 360-day year, which one of the following proposals is optimal for the corporation?
A. A US $0_50 fee per check.
B. A flat fee of US $125,000 per year.
C. A fee of 0.03% of the amount collected.
D. A compensating balance of US $1,750,000.
Answer: D
Explanation:
Multiplying 700 checks by 360 days results in a total of US $252,000 checks per year. Accordingly, at a US $0.50 fee per check, total annual cost is US $126,000 $.50 x $252,000), which is less desirable than the US $125,000 flat fee. Given that the annual collections equal US $453,600,000 $1,800 x 700 x 360), a fee of 0.03% of the amount collected is also less desirable because the annual fee would be US $136,080 .03% x $453,600,000). The br:.3 option is therefore to maintain a compensating balance of US $1,750.000 when the cost of funds is 7%, resulting in a total cost of US $122,500 .07 x $1,750,000).
NEW QUESTION: 2
If a purely competitive firm seeks to maximize profit, the firm should
A. increase output whenever marginal cost is less than average total cost.
B. choose the output where per-unit profit is greatest.
C. increase output whenever price exceeds marginal cost.
Answer: C
Explanation:
The purely competitive firm maximizes profit when price is equal to marginal cost. If marginal cost is below price, the firm should expand output until marginal cost rises enough to be equal to price.
NEW QUESTION: 3
A FortiGate is operating in NAT mode and configured with two virtual LAN (VLAN) sub interfaces added to the physical interface.
Which statements about the VLAN sub interfaces can have the same VLAN ID, only if they have IP addresses in different subnets.
A. The two VLAN sub interfaces can have the same VLAN ID, only if they have IP addresses in the same subnet.
B. The two VLAN sub interfaces must have different VLAN IDs.
C. The two VLAN sub interfaces can have the same VLAN ID, only if they have IP addresses in different subnets.
D. The two VLAN sub interfaces can have the same VLAN ID, only if they belong to different VDOMs.
Answer: B
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