The Setup Cost to Make a Carpet Is $20 Per

question 37

Multiple Choice

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.Given this information,what is total annual set up cost?

• A)$600
• B)$500
• C)$400
• D)$300

---

Definitions:

United States

A country located in North America, consisting of 50 states and a federal district, recognized for its economic and military power globally.

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of another after the contract has been concluded.

Health Care Insurance

Insurance that finances the medical and surgical expenses for the individual covered under the policy.

Associated

Often used to describe things or entities that are connected or linked with each other in some way.