In a production process a machine produces 250 products a day. One employee is packing the products and can pack 8 products an hour. The production process operates 12 hours a day. It costs $0.20 per hour to hold the product and restarting the machine costs $140. Products are sold for $5 profit. 

11. What is the daily inventory cost? 

a. $199.4 

b. $207.4 

c. $185.6 

d. $193.6 

e. none of the above 

12. What is the inventory cost per item? 

a. $2.58 

b. $2.30 

c. $2.08 

d. $1.87 

e. none of the above 

13. How many hours is the machine producing before it is stopped? 

a. 6.5 

b. 7.1 

c. 5.8 

d. 5.2 

e. none of the above 

14. How many hours is the machine idle before restarting it? 

a. 11.5 

b. 9.4 

c. 10.4 

d. 12.9 

e. none of the above

Answer rating: 100% (QA)

Answer 11 b 2074 12 a 258 13 d 52 14 a 115 Explanation The daily inventory cost is calculated using ... View the full answer