ACME Inc produces specialized instrument for specific use. The production rate is 80,022 units per day. Annual demand for the instrument is 830,113 units per year. The setup cost for the production run is $10,058, and the variable cost is $691 per unit. ACME Inc interest rate is 28.5% per year. Assume that there are 260 working days per year. What is the proportion of Downtime, T2, in days for this specialized instrument?

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ACME Inc produces specialized instrument for specific use.
The production rate is 80,022 units per day. Annual demand
for the instrument is 830,113 units per year. The setup cost
for the production run is $10,058, and the variable cost is
$691 per unit. ACME Inc interest rate is 28.5% per year.
Assume that there are 260 working days per year.
What is the proportion of Downtime, T2, in days for this
specialized instrument?
Transcribed Image Text:ACME Inc produces specialized instrument for specific use. The production rate is 80,022 units per day. Annual demand for the instrument is 830,113 units per year. The setup cost for the production run is $10,058, and the variable cost is $691 per unit. ACME Inc interest rate is 28.5% per year. Assume that there are 260 working days per year. What is the proportion of Downtime, T2, in days for this specialized instrument?
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