Question

Martin Marauders manufactures zinc die cast brackets for use in electrical housings. The annual demand for these zinc die cast brackets is 14,000 units. Martin Marauders can produce 36 zinc die cast brackets per hour and the company works an 14 hour day for 260 days each year.
The cost to set up for production of the zinc die cast brackets is $140. Each zinc die cast bracket costs $1.52. The company uses a rate of 20% of the item cost to determine the annual holding cost. Calculate the economic production quantity.

	6,155 units
	3,591 units
	3,800 units
	3,207 units
	3,394 units

Answer 1