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 300 days per year. If has orders for

image text in transcribed
Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. If has orders for about 11,600 flashing lights per year and has the capability of producing 105 per day. Setting up the light production costs $51. The cost of each light is $1,05. The holding cost is $0.10 per light per year. a) What is the optimal size of the production run? 4327 units (round your response to the nearest whole number). b) What is the average holding cost per year? $136.68. (round your response to two decimal places). c) What is the average setup cost per year? $136.72 (round your rosponse to two decimal places) d) What is the total cast per year, including the cost of the lights? (round yout 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

Understanding And Managing Public Organizations

Authors: Hal G. Rainey

4th Edition

047040292X, 978-0470402924

More Books

Students also viewed these General Management questions