The highest daily fee to eliminate collection float is $551 (approx). According to the given information, the highest daily fee that should be paid to eliminate the collection float is $550.82 which is approx $551.
<h3>What is a Collection Float?</h3>
Collection Float refers to an asset that is currently in a state of transition. It is used in two contexts:
- Concerning the Bank Deposits
Given,
Average Daily Receipt = $26,482
Average clearing days = 1.3 days
Daily Interest Rate = 0.016%
Required to Calculate = Highest daily fee to eliminate collection float
Calculation,
Highest daily fee collection float = Average daily receipt x Average clearing days x daily interest rate.
= $26,482 x 1.3 x 0.016%
Highest daily fee to eliminate collection float = $550.8 which is $551 (approx).
Thus, According to the given information, the highest daily fee that should be paid to eliminate the collection float is $550.82 which is approx $551.
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It's referred as transit advertising
Answer:
Differential income = $8,100
Explanation:
<em>The differential income is the difference in income between the two alternative uses of the unused space. This would be done as follows:</em>
<em>Option 1</em>
<em>Income from the pop corn option:</em>
$
Sales value 715,000
Less commission (6%×715,000) <u>(42,900)</u>
Net sales value <u>672,100</u>
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Option 2 :
<em>Lease income from Salty Snacks</em>
$
Lease income 188,800
Taxes 47,000
Insurance <u> 9,000</u>
Annual Net lease income <u> 132,800</u>
Total lease income for 5 years 132800× 5= $664,000
Differential income 672,100-664,000 = 8,100
Differential income = $8,100
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Whenever supply is higher than demand prices will drop or lower
