Answer:
800 Recliners
Explanation:
Calculation for the optimal number of recliners the company should make during each production run
Using this formula
Economic Order Quantity (EOQ) =√ [(2 D x S) / C]
Where,
Annual Demand (D) = 6,400 Recliners
Fixed Ordering Cost (S) = $400
Carrying cost per recliner (C) = $8
Let plug in the formula
Economic Order Quantity (EOQ)= √[(2 x 6,400 x $400) / $8]
Economic Order Quantity (EOQ)=√$5,120,000/$8
Economic Order Quantity (EOQ)=√$640,000
Economic Order Quantity (EOQ)= 800 Recliners
Therefore the optimal number of recliners the company should make during each production run will be 800 Recliners
I think the correct answer for this would be enchancement
Answer:
Choosing alternative B would increase net income by $17,100
Explanation:
The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:
Alternative A Alternative B Difference between A&B
Revenues $146,100 $185,900 $39800
Costs ($104,400) ($127,100) ($22700
)
Net income $41,700 $58,800 $17,100
Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100
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One advantage of modularization is that it simplifies its own manufacturing systems. With this, companies can separate their material cost and product development, and they can also optimize their total product cost through increasing the potential of the variety of products, having a fast product development and upgrade, having a better time-to-market, service support, aftermarket, and lastly, enabling continuous market and product improvement.
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