The Setup Cost to Make Carpets Is $20 Per Setup

question 42

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 setup cost under the economic production quantity policy?

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

Acknowledge the contributions of tectonic settings to regional mountain formation.

Interpret geological evidence for past and present uplift phenomena.

Distinguish between the characteristics of continental and oceanic crust, including their thickness.

Apply knowledge of geological processes to explain variations in regional elevations.

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Definitions:

ROI

Return on Investment; a performance measure used to evaluate the efficiency of an investment by comparing the amount of return relative to the investment's cost.

Residual Income

The income that remains after deducting all required costs of capital from the net operating income.

Investment Centers

Divisions or units within an organization that are responsible for both generating revenue and controlling costs, thus having an impact on the investment returns.

Return On Investment

A measure of the profitability of an investment, calculated as the net profit from the investment divided by the cost of the investment.