JC Penney Company, Inc., through its subsidiary JC Penney Corporation, Inc., sells merchandise through department stores. The company primarily sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, home furnishings, and large appliances; and provides services, including styling salon, optical, portrait photography, custom decorating, and home services. Assume that it costs JC Penny $30 to convert marketable securities to cash and the firms marketable securities portfolio will earn an 8% annual return (use 365 day year). Also, assume that the standard deviation of JC Pennys daily net cash flows is estimated to be $27,000. Assume the LCL is $1,000. JC Penny uses the Miller Orr model. Required: a. Calculate the spread. b. Calculate the target cash balance c. Calculate the upper control limit d. Calculate the average cash balance.