Find Replace Select Dictate 15 Editing Voice 5 - A Aa. Po 5 AL 1 AaBbCcDc AaBbCcDc AaBb Cc Aabbccc AaB * A-DA QE 1 Normal 1 No Spac... Heading 1 Heading 2 Title Paragraph Styles 2 Inventory Cost and Production Cost A manufacturer of copy machines sells 12,000 units annually of its large office copier (Model X), and 15,000 units annually of its smaller office copier (Model Y). Each printer has a unique component which holds the print cartridge Currently, the total annual cost (that is, the total production cost plus total inventory cost) is $331,000. Management is considering a single component to replace the two different components currently used for the copiers. The specifications for the new component are: Fixed setup cost $300.00 Manufacturing cost $12 Holding cost 25% of manufacturing cost 5. How many units per batch should the company produce? (1 pt) 6. Calculate the total inventory cost of the new component. (1 pt) 7. The operations manager claims there is a savings to be gained from using the new component since the company can pool the demand of the two products. Consider the total cost formula from class TC=IC+PC which says that total cost is equal to total inventory cost plus total production cost." Using this logic, is the operations manager's claim correct that there is a savings from using the new component? (2 pts) D Focus 20 ES lish (United States) ENG arch O