Theo's Bar & Grill Needs $147,000 a Week to Pay

Theo's Bar & Grill needs $147,000 a week to pay bills. The standard deviation of the weekly disbursements is $9,600. The firm has established a lower cash balance limit of $40,000. The applicable interest rate is 3.5 percent and the fixed cost of transferring funds is $45. Based on the BAT model, what is the optimal average cash balance?

A) $36,199
B) $49,568
C) $70,100
D) $99,136
E) $112,400