Tritonic is considering switching from depository transfer checks to using wire transfers for sending funds from its local banks to its bank in Chicago. The cost of the wire transfer is $5.25 more than the cost of depository transfer checks. The change would reduce the total float by 3 days. Tritonic can earn 8.5% on the funds released through the more efficient transfer. If Tritonic has 30 local
banks, what annual sales level would the firm require before the change to wire transfers would be profitable? (Assume there are 250 business days each year.)
A) $391,544,118
B) $56,360,294
C) $84,286,029
D) $1,149,750
B
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