Question

A company needs 450,000 items per year. It costs the company $2,160 to prepare a production...

A company needs 450,000 items per year. It costs the company $2,160 to prepare a production run of these items and $16 to produce each item. If it also costs the company $1.50 per year for each item stored, find the number of items that should be produced in each run so that total costs of production and storage are minimized. (Answer must be an exact number)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company needs 150,000 items per year. It costs the company $720 to prepare a production...
A company needs 150,000 items per year. It costs the company $720 to prepare a production run of these items and $14 to produce each item. If it also costs the company $1.50 per year for each item stored, find the number of items that should be produced in each run so that total costs of production and storage are minimized. _______________items/run
A company needs 200,000 items per year. It costs the company $960 to prepare a production...
A company needs 200,000 items per year. It costs the company $960 to prepare a production run of these items and $15 to produce each item. If it also costs the company $1.50 per year for each item stored, find the number of items that should be produced in each run so that total costs of production and storage are minimized.
Suppose that a company needs 1,600,000 items during a year and that preparation for each production...
Suppose that a company needs 1,600,000 items during a year and that preparation for each production run costs $500. Suppose also that it costs $14 to produce each item and $4 per year to store an item. Use the inventory cost model to find the number of items in each production run so that the total costs of production and storage are minimized.
suppose that a company needs 1,500,000 items during a year and that preparation for each production...
suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $900. suppose also that it costs $25 to produce each item and $3 per year to store an item. use the inventory cost model to find the number of items in each production run so that the total cost of production and storage ave minimized. a) ? items/run
A company is involved in the production of two items (X and Y). The resources need...
A company is involved in the production of two items (X and Y). The resources need to produce X and Y are twofold, namely machine time for automatic processing and craftsman time for hand finishing. The table below gives the number of minutes required for each item: Machine time Craftsman time Item X   13           20 Y   19           29 The company has 40 hours of machine time available in the next working week but only 35 hours of craftsman time. Machine...
Leonardo Inc. needs someone to supply it with 450,000 planks of wood per year to support...
Leonardo Inc. needs someone to supply it with 450,000 planks of wood per year to support its manufacturing needs over the next four years, and your company has decided to bid on the contract. It will cost your firm $5,000,000 to install the equipment necessary to start production. The equipment will be depreciated using the straight-line method to 0 over the projects life. The salvage value of the equipment is expected to be 0. Your fixed costs will be $1,000,000...
A company has a production at a rate of 200 units per day. 80 units will...
A company has a production at a rate of 200 units per day. 80 units will be sold daily. The production will take place five days a week, 48 weeks a year. It usually takes a full day to get the machine ready for another production run, at a cost of $300. Inventory holding costs will be $10 a year. (calculate to2 decimal places) a. What is the optional run size and lowest annual cost for carrying and setup? b....
StoreAll produces plastic storage bins for household storage needs. Regular Large Sales price per unit $9.00...
StoreAll produces plastic storage bins for household storage needs. Regular Large Sales price per unit $9.00 $10.50 Variable costs per unit 3.20 4.50 The company makes two sizes of? bins: large? (50 gallon) and regular? (35 gallon). Demand for the products is so high that StoreAll can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can only be run for 3,000 hours per period. StoreAll can...
Rockford company manufactures a part for use in its production of hats. when 10,000 items are...
Rockford company manufactures a part for use in its production of hats. when 10,000 items are produces, the costs per unit are: Direct materials $0.75 Direct manufacturing labor 3.00 Variable Manufacturing overhead 1.50 Fixed Manufacturing overhead  1.60 Total: $6.85 Angel company has offered to sell to rockford company 10,000 units of the part for $6.00 per unit. the plant facilities could be used to manufacture another item at a savings of $9,000 if rockford accepts the offer. In addition, $1.00 per...
The Wod Chemical Company produces a chemical compound that is used as a lawn fertilizer. The...
The Wod Chemical Company produces a chemical compound that is used as a lawn fertilizer. The compound can be produced at a (fixed) rate of 15,000 pounds per day. Annual demand for the compound is 0.6 million pounds per year. The fixed cost of setting up for a production run of the chemical is $1000, and the variable cost of production is $6.50 per pound. The company uses an annual interest rate of 25 percent to account for the cost...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT