Fandango Company's Credit Terms Allow Its Customers to Pay Invoices

Multiple Choice

Fandango Company's credit terms allow its customers to pay invoices in 30 days. Practice has not followed policy and the collection period is at 45 days. If Fandango's receivables are $164,565 and the company can earn 12% on capital invested, what is the opportunity cost it is experiencing by not adhering to their collection policy?

A) $19,747.80
B) $6,582.60
C) $13,165.20
D) $61,437.60
E) $8,776.80