Hot Foot Shoes would like to maintain its cash account at a minimum level of $44,000, but expects the standard deviation in net daily cash flows to be $5,900, the effective annual rate on marketable securities to be 5.6 percent per year, and the trading cost per sale or purchase of marketable securities to be $110 per transaction.
What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places.)