Ask question

Ask question

All categories

2 years ago

7

Radovilsky Manufacturing Company , in Hayward, California, makes flashing lights for toys. The company operates its production f

acility 300 days per year. It has orders for about 12,500 flashing lights per year and have the capability of producing 100 per day. Setting up the light production costs of $51. The cost of each light is $1.05. The holding cost is $0.10 per light per year.What is the optimal size of the production run?What average holding cost per year? -What is the average setup cost per year? What is the total cost per year, including cost of the lights?

1 answer:

IRISSAK [1]2 years ago

6 0

Answer:

Explanation:

Given Demand D = 12,500 lights per year

Set up cost S = $51

Cost of each light (C) = $1 .05

Holding cost = $0.1 per light per year

Production p= 100 lights per day

Usage (d) = 12,500/300 days = 41.66(round up to 42)

= 42 lights per day

a) What is the optimal sizeof the production run?

Q =√{(2×D×S) / (H(1-(d / p)))}

Q =√{(2×12500×51)/(0.1(1-(42/100)))}

= 4688.577 = 4689 units

Q = 4689 units

b) What is the average holding cost per year?

Average holding cost per year = average inventory level * H

= (Q/2)H[1- (d/p)]

= (4689/2)0.1[1-(42/100)]

= $135.98

c) What is the average setup cost per year?

average setup cost per year = (D/Q)S

= (12,500/4689)× 51

= 135.97

d) What is the total cost per year, including the cost of the lights?

Total cost = D*C + total set up cost + total holding cost

12,500 ×1.05 + 135.98 + 135.97

Total cost = $ 13,396.95

You might be interested in

Shocker Associates sold office equipment for cash of $162,000. The accumulated depreciation at date of sale amounted to $123,000

siniylev [52]

Answer:

Original Cost of asset = $269,000

Explanation:

Provided information,

We have been provided that selling value of equipment = $162,000

Gain recognized on sale = $16,000

Gain = Selling price - Book Value

$16,000 = $162,000 - Book Value

Book Value = $162,000 - $16,000 = $146,000

Accumulated Depreciation = $123,000

Book Value = Original Cost - Accumulated Depreciation

$146,000 = Original cost - $123,000

$146,000 + $123,000 = Original Cost = $269,000

8 0

2 years ago

Which of the following is the best way to measure who read the company's public relations message and what they thought about it

algol [13]

Answer:

a. Ask consumers for relevant feedback after the campaign

Explanation:

The company's public messages in order to establish a relationship with the clients or its costumes have to be essentially exposed through the mediums like campaigns and the media to get relevant feedback form them and helps in the analysis if its future scope.

These messages target the key audiences and use all mediums of communication like PR events.

6 0

3 years ago

Why might an economist favor activist policies in developed countries and laissez-faire policies in developing countries

Maslowich

Answer:

One of the main economic issues in developing countries is rampant corruption or extremely inefficient government institutions. This means that less government intervention is always better in developing countries.

On the other hand, in developed countries, the checks and balances system exists within government institutions and even though corruption may exist, it is not as widely spread. The most severe economic problem in developed countries is inequality and huge economic actors. This is why activist policies may be necessary in developed countries, at least in certain economic sectors.

5 0

2 years ago

Which of these statements is correct with regard to the implementation of marketing objectives?

xz_007 [3.2K]

Answer:

B). A lot of ongoing communication is involved when executing a plan.

Explanation:

The second statement regarding 'a lot of ongoing communication is involved when executing a plan' is the most correct regarding the implementation of marketing objectives. <u>Effective communication is the most significant key to ensure that the plans are timely and efficiently executed, the tasks are divided and coordinated significantly, and the desired goals and objectives are achieved successfully</u>. Thus, <u>option B</u> is the correct answer.

3 0

2 years ago

Lois has a balance of $970 on a credit card with an APR of 24.2%, compounded monthly. About how much will she save in interest o

Aleks04 [339]

Answer:

Lois will save $152.51 when she wil transfer her balance.

Explanation:

Amount to be paid in 1 year for original credit card is given as

$P_1^{'}=P*(1+r_1)^t$

Here $P^{'}_1$ is the amount to be paid after P is the balance which is 970, $r_1$ is the APR for first credit card which is 24.2% and t is compounding frequency which is 12 so

$P_1^{'}=P*(1+r_1)^t\\P_1^{'}=970*(1+\dfrac{24.2}{12}\%)^{12}\\P_1^{'}=970*(1.0207)^{12}\\P_1^{'}=970*1.2707\\P_1^{'}=\$1232.61$

Similarly for the second one the values are calculated as

$P_2^{'}=P*(1+r_2)^t\\P_2^{'}=970*(1+\dfrac{10.8}{12}\%)^{12}\\P_2^{'}=970*(1.108)^{12}\\P_2^{'}=970*1.1135\\P_2^{'}=\$1080.10$

The differnce of the two values is calculated as

$P_1'-P_2'=1232.61-1080.10\\Difference=\$ 152.51$

The difference is $152.51 which she could save.

7 0

2 years ago

Read 2 more answers