The Burger Stop Spends $52,000 a Week to Pay Bills

The Burger Stop spends $52,000 a week to pay bills and maintains a lower cash balance limit of $60,000.The standard deviation of the disbursements is $7,500.The applicable weekly interest rate is 0.04 percent and the fixed cost of transferring funds is $50.What is your optimal average cash balance based on the Miller-Orr model?

A) $79,116
B) $83,208
C) $110,315
D) $237,348
E) $249,624