The Setup Cost to Make Carpets Is $20 Per Setup

question 62

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.What is the total annual holding cost under the economic production quantity policy?

• A)$374.17
• B)$458.26
• C)$561.25
• D)$1,122.50

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Definitions:

Empathy

The ability to understand the emotions and concerns of another person, especially when they differ from one’s own.

Moral Reasoning

The process of determining right from wrong in human behavior through logic and ethics.

Lawrence Kohlberg

An American psychologist best known for his theory of stages of moral development, which explains the evolution of moral reasoning in individuals.

Law and Order

A state of society where laws are obeyed, and the public security system effectively maintains peace.