No More Books Corporation has an agreement with Floyd Bankwhereby the bank handles $3.6 million in collections a day andrequires a $280000 compensating balance. No More Books iscontemplating canceling the agreement and dividing its easternregion so that two other banks will handle its business. Banks Aand B will each handle $1.8 million of collections a day and eachrequires a compensating balance of $130000. No More Booksfinancial management expects that collections will be acceleratedby one day if the eastern region is divided.