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:

Janitorial Department Costs

Expenses associated with maintaining the cleanliness and functionality of a company's physical premises, including salaries of custodial staff and cleaning supplies.

Sequential Method

A process of handling tasks one after another in a specific order.

Support Departments

Units within an organization providing essential services to profit centers or other departments, but not directly generating revenue.

Janitorial Department Costs

These are expenses related to the cleaning and maintenance of a company’s premises.