The Setup Cost to Make Carpets Is $20 Per Setup

question 39

Multiple Choice

The setup cost to make carpets is $20 per setup.The holding cost is $1.75 per yard per year,and the annual demand is 12,000 yards of carpet per year.The manufacturing facility operates 300 days,and 120 yards of the carpet are produced per day.In this example,______.

• A)the daily demand rate is 12,000/365
• B)the daily demand rate is 12,000/300
• C)the daily production rate is 12,000/300
• D)the daily production rate is 12,000/300.

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Definitions:

University

An institution of higher education and research, which grants academic degrees in various subjects.

Rate of Return

The gain or loss of an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Monthly Withdrawals

Regular amounts of money taken out of an account, investment, or fund each month, often for retirement income or savings spending.

Compounded Monthly

Refers to the process of calculating interest earnings on a principal amount, where the interest is added back to the principal sum each month, leading to interest earnings on interest.