Question 15-(C) EXCITE Pte Ltd manufactures game consoles at 500 units a month. Demand is 250 units a month. Unit cost is $5, batch set-up cost is $1,000 and holding cost is $1.00 a unit a month. What is the optimal total cost at its optimal batch size? Choose the nearest answer. $3,250 a month $2,250 a month $1,750 a month 3000 a month $3.000 a month
Question 15-(C) EXCITE Pte Ltd manufactures game consoles at 500 units a month. Demand is 250 units a month. Unit cost is $5, batch set-up cost is $1,000 and holding cost is $1.00 a unit a month. What is the optimal total cost at its optimal batch size? Choose the nearest answer. $3,250 a month $2,250 a month $1,750 a month 3000 a month $3.000 a month
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Question 15-(C)
EXCITE Pte Ltd manufactures game consoles at 500 units a month. Demand is 250 units a month. Unit cost is $5,
batch set-up cost is $1,000 and holding cost is $1.00 a unit a month. What is the optimal total cost at its optimal
batch size? Choose the nearest answer.
$3,250 a month
3000 a month
C
$2,250 a month
$1,750 a month
$3.000 a month
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education