Question
Exercise: Use the following premise and answer the questions below Coval is the production manager for MDT, a small producer of metal parts. MDT sells
- Exercise: Use the following premise and answer the questions below
Coval is the production manager for MDT, a small producer of metal parts. MDT sells 10,378 gear wheels each year. MDT setup fee is $45 and the
maintenance cost is $0.60 per wheel
gear per year. MDT can produce 493
gear wheels per day. The daily demand for
gear wheels is 51 units.
What is the optimal amount of production?
What is the maximum inventory level of gear wheels that will be in the MDT warehouse?
What is MDT annual setup cost?
What is the annual cost of maintaining MDT?
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Cornerstones of Managerial Accounting
Authors: Mowen, Hansen, Heitger
3rd Edition
324660138, 978-0324660135
