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

question 40

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:

Hours Studied

The duration of time spent in the activity of studying, typically measured in hours.

Phosphoric Acid

A colorless, odorless phosphorus-containing inorganic acid, commonly used in food processing, dentistry, and to acidify beverages.

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Acidity

A chemical property that quantifies the level of acidic compounds in a substance, often influencing taste and reactivity.