Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

95) Montana Moe's is a sandwich shop chain in the Northwest United States. Each franchise on average spends $36,800 a week to pay bills and

95) Montana Moe's is a sandwich shop chain in the Northwest United States. Each franchise on average spends $36,800 a week to pay bills and maintains a lower cash balance limit of $15,000. The standard deviation of the disbursements is $5,400. The applicable weekly interest rate is .046 percent and the fixed cost of transferring funds is $55. What is the optimal average cash balance based on the Miller-Orr model for each Montana Moe's facility? A) $28,906 B) $33,369 C) $38,211 D) $24,700 E) $31,764

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study Guide And Working Papers For Advanced Accounting

Authors: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik, Sharon O'reilly

10th Edition

0077268040, 9780077268046

More Books

Students also viewed these Accounting questions