The Operations Manager for Shadyside Savings & Loan Orders Cash

question 155

Multiple Choice

The Operations Manager for Shadyside Savings & Loan orders cash from her home office for her very popular "BIG BUCKS" automated teller machine,which only dispenses $100 bills.She estimates that this machine dispenses an average of 12,500 bills per month,and that holding a bill in inventory costs 10 percent of its value annually.She knows that each order for these bills costs $300 for clerical and armoured car delivery costs,and that order lead time is six days. If she were to order 6,000 bills at a time,what would be the average monthly total costs,EXCLUDING the value of the bills?

• A)$625
• B)$1,250
• C)$2,500
• D)$3,125
• E)$5,000

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Definitions:

Horizontal Merger

The combination of two or more companies that operate in the same industry or produce similar products or services.

Automobile Company

A business that specializes in the manufacturing, design, marketing, or selling of motor vehicles.

Cooperative

An organization that is owned and operated by its members, who share the profits and benefits and democratically make decisions.