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:

Adjustment Heuristic

A decision-making process where an initial estimate is adjusted based on additional information or analysis.

Associative Play

A stage in child development where children play together, engaging in similar or complementary activities but without a set organization, rules, or goals.

Switching Members

Switching members involves changing the composition of a group or team by adding new members and/or removing existing ones, typically to improve performance or adapt to new challenges.

Nonprogrammed Decisions

Decisions that are made in response to unique, non-routine, and unpredictable situations.