The setup cost to make a carpet is $20 per setup. The holding cost is $2.00 per yard per year, and the annual demand is 12,000 yards. The manufacturing facility operates 300 days, and 120 yards of the carpet are produced per day. The maximum inventory is ______.
A. 600
B. 500
C. 400
D. 300
C. 400
You might also like to view...
Which step of the Six Sigma DMAIC procedure involves identifying data sources and preparing a data collection plan?
A) Define B) Measure C) Analyze D) Improve E) Control
There are no defenses to liability under the Comprehensive Environmental Response, Compensation, and Liability Act
a. True b. False Indicate whether the statement is true or false
When allocating service department costs, companies should use:
A. budgeted costs rather than actual costs, and a rate that combines variable and fixed costs. B. budgeted costs rather than actual costs, and separate rates for variable and fixed costs. C. actual costs rather than budgeted costs, and a rate that combines variable and fixed costs. D. actual costs rather than budgeted costs, and separate rates for variable and fixed costs. E. a rate that is based on matrix theory.
Ieso Corporation has two stores: J and K. During November, Ieso Corporation reported a net operating income of $30,000 and sales of $450,000. The contribution margin in Store J was $100,000, or 40% of sales. The segment margin in Store K was $30,000, or 15% of sales. Traceable fixed expenses are $60,000 in Store J, and $40,000 in Store K. Sales in Store J totaled:
A. $400,000 B. $150,000 C. $100,000 D. $250,000