UFC Inc. manufacture 100,000 specialized bulbs for its transformer division. The bulbs will be used evenly throughout the year. The setup cost every time a production run is made isP800 and the cost to carry bulbs in inventory for the year is P4. UFC's objective is to produce the bulbs at the lowest cost possible. 19. Assuming that each production run will be for the same number of bulbs, how many production runs should UFC make? a. 10 b. 14 с. 16. d. 19
UFC Inc. manufacture 100,000 specialized bulbs for its transformer division. The bulbs will be used evenly throughout the year. The setup cost every time a production run is made isP800 and the cost to carry bulbs in inventory for the year is P4. UFC's objective is to produce the bulbs at the lowest cost possible. 19. Assuming that each production run will be for the same number of bulbs, how many production runs should UFC make? a. 10 b. 14 с. 16. d. 19
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer question 18 and 19 po. Show solution. This is the complete details po
Transcribed Image Text:The following information relates to Blueberry Company's materials Y
240
Working days per year
Normal lead time in working days
Maximum lead time in working days
20.
45
18. Assuming that the units of material Y will be required evenly throughout the year,
the safety stock and order point would be
Safety Stock
600
Order Point
а.
600
1,350
600
b.
600
с.
750
d.
750
1,350
UFC Inc. manufacture 100,000 specialized bulbs for its transformer division. The
bulbs will be used evenly throughout the year. The setup cost every time a production
run is made isP800 and the cost to carry bulbs in inventory for the year is P4. UFC's
objective is to produce the bulbs at the lowest cost possible.
19. Assuming that each production run will be for the same number of bulbs, how
many production runs should UFC make?
а.
10
b.
14
C.
16.
d.
19
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