Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 3 0 0 days per year. It has

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,000 flashing lights per year and has the capability of producing 95 per day. Setting up the light production costs $49. The cost of each light is $0.95. The holding cost is $0.15 per light per year.
Part 2
a) What is the optimal size of the production run? 3,6803,680 units (round your response to the nearest whole number).
Part 3
b) What is the average holding cost per year? $enter your response here (round your response to two decimal places).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

General Management Processes And Action

Authors: David A. Garvin

1st Edition

0072432411, 978-0072432411

More Books

Students also viewed these General Management questions