A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. The production department of this company can produce at the rate of 60 units per day. The setup cost for a production run is $ 125.00. The cost of holding is $ 4.00 per unit per year. The demand for the item is continuous and constant and is 3,900 units per year. The demand occurs only when the company is operating, that is, 5 days a week for 52 weeks. Find the optimum number of units to be produced in one batch (economic production quantity). Round the number to nearest integer.
Answer to relevant QuestionsWhat is the expected monetary value of producing 6 cases of cheese at a cost of $45 and Jason gets $95 per case?Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-gauge aluminum, which the company sells for $36 per roll. Cost information for the year ...What are the main advantages of activity-based costing techniques?Briefly explain the following debt features: (a) Indenture(b) Restrictive convenant(c) Trustee(d) Call provisionSuppose you work for a furniture manufacturer, one of whose products is the chair depicted in Figure. Finished goods inventory is held in a central warehouse in anticipation of customer orders. Finished goods are controlled ...
Post your question