Liberty Celebrations, Inc. manufactures a line of flags. The annual demand for its flag display is estimated to be 100.000 units. The annual cost of carrying one unit in inventory is $1.60, and the cost to initiate a production run is s50. There an no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the first of which is to be run immediately. Liberty Celebrations has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. (Note: Setup cost = Order cost) The number of production runs per year of the flag displays that would minimize the sum of carrying costs and set-up costs for the coming year is Select one: a. 30 b. 40 C. 20 O d.50

Liberty Celebrations, Inc. manufactures a line of flags. The annual demand for its flag display is estimated to be 100.000 units. The annual cost of carrying one unit in inventory is $1.60, and the cost to initiate a production run is s50. There an no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the first of which is to be run immediately. Liberty Celebrations has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. (Note: Setup cost = Order cost) The number of production runs per year of the flag displays that would minimize the sum of carrying costs and set-up costs for the coming year is Select one: a. 30 b. 40 C. 20 O d.50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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