Ambrosia Bakery makes cakes for freezing and subsequent sale. The bakery which operates five days a week, 52 weeks a year can produce cakes at the rate of 116 cakes per day. The bakery sets up the cake-production operation and produces until a predetermined number (Q) has been produced. When not producing cakes, the bakery uses its personnel and facilities for producing other bakery items. The setup cost for a production run of cakes is $700. The cost for holding frozen cakes in storage is $9 per cake per year. The annual demand for frozen cakes, which is constant over time, is 6,000 cakes. (This question has five parts, a, b, c, d, and e)

Question b: What is the Total Annual Inventory Costs?

Answer rating: 100% (QA)

a NA b To calculate the total annual inventory costs The b... View the full answer