R&A Company produces scissors used in offices and in art stores. The mini scissors has been one of its most popular items: annual demand is 33,750 units. R&A produces mini scissors in batches. On average, R&A can manufacture 250 units per day. Demand for these mini scissors during the production process is 60 per day. The setup cost for the equipment necessary to produce the mini scissors is P300. Carrying cost is P10 per unit per year. How many units should R&A manufacture in each batch?
R&A Company produces scissors used in offices and in art stores. The mini scissors has been one of its most popular items: annual demand is 33,750 units. R&A produces mini scissors in batches. On average, R&A can manufacture 250 units per day. Demand for these mini scissors during the production process is 60 per day. The setup cost for the equipment necessary to produce the mini scissors is P300. Carrying cost is P10 per unit per year. How many units should R&A manufacture in each batch?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter13: The Balanced Scorecard: Strategic-based Control
Section: Chapter Questions
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R&A Company produces scissors used in offices and in art stores. The mini scissors has been one of its most popular items: annual demand is 33,750 units. R&A produces mini scissors in batches. On average, R&A can manufacture 250 units per day. Demand for these mini scissors during
the production process is 60 per day. The setup cost for the equipment necessary to produce the mini scissors is P300. Carrying cost is P10 per unit per year. How many units should R&A manufacture in each batch?
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