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[item no.14] A company uses the production run model to determine the number of t-shirts that must be produced per production run. The cost per t-shirt is P150. The holding cost is P5 per unit per year and the cost of setting up the production line is Php1,500 per setup. The production rate is 250 per day and the daily demand rate is 100 units. The optimal production quantity per production run is 5000 units. What is the total annual cost (including unit cost)? a. Php 3.75 million b. Php 376,500 c. Php 3.765 million d. Php 15,000

[item no.14] A company uses the production run model to determine the number of t-shirts that must be produced per production run. The cost per t-shirt is P150. The holding cost is P5 per unit per year and the cost of setting up the production line is Php1,500 per setup. The production rate is 250 per day and the daily demand rate is 100 units. The optimal production quantity per production run is 5000 units. What is the total annual cost (including unit cost)? a. Php 3.75 million b. Php 376,500 c. Php 3.765 million d. Php 15,000

Practical Management Science
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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[item no.14] A company uses the production run model to determine the number of t-shirts that must be produced per production run. The cost per t-shirt is P150. The holding cost is P5 per unit per year and the cost of setting up the production line is Php1,500 per setup. The production rate is 250 per day and the daily demand rate is 100 units. The optimal production quantity per production run is 5000 units. What is the total annual cost (including unit cost)?

a. Php 3.75 million

b. Php 376,500

c. Php 3.765 million

d. Php 15,000

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