The Cow Pie Spreader Co. spends $238,700 a week to pay bills and maintains a lower cash balance limit of $67,000. The standard deviation of the disbursements is $22,400. The applicable weekly interest rate is 0.052 percent and the fixed cost of transferring funds is $46. What is the target cash balance based on the Miller-Orr model?

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The target cash balance based on the Miller-Orr model is $99,169. This is calculated as follows:TCB = (2 * D * S) / (i * F)TCB = (2 * $238,700 * $22,400) / (0.052% * $46)TCB = $99,169