Suppose That a Plant Manager Uses Economic Batch Sizes for Production

question 44

Multiple Choice

Suppose that a plant manager uses economic batch sizes for production of a product.Suppose further that the setup cost is $50 per batch,the holding cost per unit per year is $10,the annual demand is 30,000 units,the firm operates (and experiences demand) 300 days per year,and the production rate per day is 1000 units.What will be the maximum inventory level that this product ever reaches?

• A)577
• B)30
• C)519
• D)27,000
• E)58

Identify and classify different types of accounts such as assets, liabilities, equity, revenue, and expenses.

Understand and explain the basics of debits and credits in the accounting system.

Explain the relationships and differences between key financial statements including the balance sheet, income statement, and statement of retained earnings.

Describe the process of recording and posting transactions in the accounting system.

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Definitions:

Investments Abroad

Allocation of resources by individuals, corporations, or governments in foreign countries for the purpose of acquiring assets or stakes in companies.

Exchange Rate

The value at which the currency of one nation can be converted into the currency of another nation.

Euros

The official currency used by 19 of the 27 European Union countries, known collectively as the Eurozone.

Importer

An individual, company, or entity that buys goods or services from a foreign country for sale within their own country.