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. Collegiate Tuxedo rents apparel throughout the year. They have experienced non-payment by about 15% of their customers with an average loss of $200. Collegiate wants to stem their losses by using an instant electronic credit check on the customer. These checks will cost them $7 on each of the 1,000 customers. The opportunity cost is 1.5% for the credit period. Should they pursue the credit check? A. No, because the $7000 cost is too high.B. No, because a $200 loss is minor.C. Yes, because the net gain is $30,000.D. Yes, because the net gain is $23,000.E. Yes, because the net gain is $193,000.
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