Question: All work must be shown for a solution and final answer labeled. Acta Metals manufactures safes of different sizes and models. One of the models

All work must be shown for a solution and final answer labeled.

Acta Metals manufactures safes of different sizes and models. One of the models has a demand of 20,000 safes/year. The company can produce at a rate of 4,000 safes a month and it cost $30 to initiate each production run. The actual production cost for each safe is $5.37 and the holding of each unit could be charged a nominal annual interest rate of 15%, if it were to be invested elsewhere.

1. Determine the production uptime and downtime.

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