Jan's Dry Cleaning holds $10,000 on a typical day, although only $2,000 is essential for carrying out business. Making a midday deposit is estimated to reduce cash holdings to $8,000 and cost an extra $80 per year in lost production. If, in addition, an armored car service is engaged to pick up cash more frequently for a fee of $120 per year, cash holdings will be further reduced to $6,000 per day. Employing a computerized cash management service for an annual fee of $180 would reduce cash holdings further to $4,000. If any reduction in cash holdings will be invested in government bonds earning 3 percent, then how much money should Jan's hold?

$6000

Explanation:

If holding is $10000,

Reduction in cash holding = (10000-10000) = 0  

Interest earned in government bonds=(Reduction in holdings) × 0.03 =0

Cost of deposits = 0

Additional benefit = (interest earned - cost of deposit)

Additional benefit = 0-0 = 0

Making a mid day deposit;

Reduction in cash holding = (10000-8000) = $2000

Interest earned in government bonds = Reduction in holdings × 0.03

= 2000 × 0.03 =$60

Cost of deposits=$80

Additional benefit=$60-80=-$20

Using a armored car service;

Reduction in cash holding=(10000-6000)=4000

Interest earned in government bonds= 4000 × 0.03 = $120

Cost of deposits=$120

Additional benefit=120 - 120= $0

Using computerized cash management service;

Reduction in cash holding=(10000-4000)=6000

Interest earned in government bonds;

6000 × 0.03 = $180

Cost of deposits=$180

Additional benefit=180 - 180=$0

Additional benefit is maximized in case of both computerized management service and armor vehicle . So, Optimal cash holding is $6000

b. take periodic breaks and alternate between tasks.  

will increase work efficiency, and avoid health issues.

​participate in networking opportunities that allow you to get to know potential clients, other entrepreneurs, influential people in your community, etc. focus on doing everything you can to cultivate posting word of mouth advertisin