Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $48. The cost of each light is $1.05. The holding cost is $0.15 per light per year. a) What is the optimal size of the production run? 3653 units (round your response to the nearest whole number) b) What is the average holding cost per year? $ 161.65 (round your response to two decimal places). c) What is the average setup cost per year? $ (round your response to two decimal places).
Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $48. The cost of each light is $1.05. The holding cost is $0.15 per light per year. a) What is the optimal size of the production run? 3653 units (round your response to the nearest whole number) b) What is the average holding cost per year? $ 161.65 (round your response to two decimal places). c) What is the average setup cost per year? $ (round your response to two decimal places).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![**Radovilsky Manufacturing Company Flashing Lights Production**
Radovilsky Manufacturing Company, located in Hayward, California, manufactures flashing lights for toys. The company operates its production facility 300 days per year. It has orders for approximately 12,300 flashing lights annually and can produce 100 lights per day. Setting up the light production costs $48, and the cost per light is $1.05. The annual holding cost is $0.15 per light.
**Questions and Answers:**
a) **Optimal Size of the Production Run:**
- The optimal production run size is **3,653 units**.
(Round your response to the nearest whole number.)
b) **Average Holding Cost per Year:**
- The average holding cost per year is **$161.65**.
(Round your response to two decimal places.)
c) **Average Setup Cost per Year:**
- [No value provided in the image; please calculate using appropriate formulas based on the given data.]
(Round your response to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60cc00fc-693b-4e82-b9bb-ca697f96a628%2F48678c7c-80db-458c-b4e4-8e258dc8c877%2Fiutrebi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Radovilsky Manufacturing Company Flashing Lights Production**
Radovilsky Manufacturing Company, located in Hayward, California, manufactures flashing lights for toys. The company operates its production facility 300 days per year. It has orders for approximately 12,300 flashing lights annually and can produce 100 lights per day. Setting up the light production costs $48, and the cost per light is $1.05. The annual holding cost is $0.15 per light.
**Questions and Answers:**
a) **Optimal Size of the Production Run:**
- The optimal production run size is **3,653 units**.
(Round your response to the nearest whole number.)
b) **Average Holding Cost per Year:**
- The average holding cost per year is **$161.65**.
(Round your response to two decimal places.)
c) **Average Setup Cost per Year:**
- [No value provided in the image; please calculate using appropriate formulas based on the given data.]
(Round your response to two decimal places.)
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