The Operations Manager for Shadyside Savings & Loan Orders Cash

question 18

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 carrying a bill in inventory costs 10 percent of its value annually. She knows that each order for these bills costs $300 for clerical and armored car delivery costs, and that order lead time is six days. Assuming a 30-day month, 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)$37,500

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Definitions:

Shared Variance

The portion of variance that is common among multiple variables, indicating the degree to which they are related or share commonality.

Shared Variance

The proportion of variance that two variables share, indicating the strength of their relationship or correlation.

Negative Slope

A downward slope indicating an inverse relationship between two variables, where an increase in one correlates with a decrease in the other.

Xy Axis

Refers to the two-dimensional coordinate system formed by the intersection of the x-axis (horizontal) and y-axis (vertical), used for graphing equations or data points.