Question: Cross Collectibles currently fills mail orders from all over the United State and receipts come in to headquarters in Little Rock, Arkansas. The company's average accounts receivable (A/R) is $2.5 million and is financed by a bank loan with 11% yearly interest. Cross is considering a regional lockbox system to speed up collections which it believes will reduce A/R by 20%. The yearly cost of the system is $15,000. Calculate the estimated net annual savings to the company from implementing the lockbox system?
[A] $60,000
[B] $55,000
[C] $40,000
[D] $500,000
[E] $30,000