***PLEASE ANSWER QUESTIONS! DO NOT COPY AND PAST ANSWER FROM ANOTHER QUESTIONS OFF CHEGG***

Use the following to answer the following 4 questions Nu-Manufacturing Company (NMC) sells a product with an annual demand of 250,000 units. The set-up cost for the system which produces the product is $1,000. The holding cost is estimated at $5 per unit per year. The production capacity of the system is 1,000,000 units per year. The factory is open 300 days per year.

1) The optimal production lot size for the product:

A) 13447

B) 11547

C) 10000

D) 9822

E) 23333

2) The total minimum annual setup and holding cost is

A)47800

B) 29000

C)43301

D) 44800

E) 18000

3) If the maximum storage capacity is enough for 6600 units then the best production quantity and minimum total cost are

4) Which of the following statements about quantity discounts is false?

A) The larger annual demand, the less attractive a discount schedule will be.

B) Quantity discounts are sometimes economical.

C) The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs.

D) If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule.