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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
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