Cannes Croissants (not a real company) wishes to determine the optimum production quantity for its top-selling product, almond croissants. The annual demand for almond croissants is 12,000 units. The setup cost for a production run of the croissants is US$15. The holding cost per unit per year is US$0.50. Production is most efficient when 80 croissants are produced per day. The company operates 300 days during a year

1. What is the economic production quantity (EPQ)?

2. How many production runs will there be per year?

3. What is the maximum inventory level?

4. What is the total annual cost (in U.S. dollars)?

5. What is the length of a production run in days?