The Timberline fiRm Expects a Total Need of €12,500 Over

question 85

Multiple Choice

The Timberline firm expects a total need of €12,500 over the next 3 months.They have a beginning cash balance of €1,500, and cash is replenished when it hits zero.The fixed cost of selling
Securities to replenish cash balances is €3.50.The interest rate on marketable securities is 8% per
Annum.There is a constant rate of cash disbursement and no cash receipts during the month.
What is the total fixed order cost for the next three months based on the firm's current practice?

• A)€29.17
• B)€37.80
• C)€55.60
• D)€75.60
• E)None of the above.

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Definitions:

Collectivism

A social and cultural orientation that emphasizes the priority of group needs over individual desires or goals.

Extraversion

A personality trait characterized by outgoingness, high energy, and enjoyment in social interactions, often contrasted with introversion.

Collective Unconscious

A concept in psychology, particularly within Jungian theory, referring to a part of the unconscious mind that is shared among beings of the same species, containing universal experiences.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and influence their behavior and attitudes.