How Often Should the Bank Replenish the ATM?
Not what you're looking for?
Wachovia operates a network of automated teller machines (ATMs). On average a customer withdrawals $80 of cash each time. The bank estimates that the fixed cost of filling an ATM with cash is about $100 regardless of the amount of cash put in. Each month on average 600 customers use the ATM to withdrawal cash. How much cash should the bank keep at an ATM if its annual cost of money is 10%? How often should the bank replenish an ATM?
Purchase this Solution
Solution Summary
The solution determines how often should the bank replenish the ATM.
Solution Preview
Please see attached file for answers.
This problem is similar to an economic order quantity problem. The EOQ formula is presented below:
...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.