Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of 300 days. Setup labor cost $40.00 per hour Annual holding cost $12 per unit Daily production (8 hours) 960 units/day Annual demand for steering wheels Desired lot size (2 hours of production) 31,500 (300 days x daily demand of 105 units) Q = 240 units

Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of 300 days. Setup labor cost $40.00 per hour Annual holding cost $12 per unit Daily production (8 hours) 960 units/day Annual demand for steering wheels Desired lot size (2 hours of production) 31,500 (300 days x daily demand of 105 units) Q = 240 units

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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