A Product Has Annual Demand of 100,000 Units

question 87

Multiple Choice

A product has annual demand of 100,000 units.The plant manager wants production to follow a four-hour cycle.Based on the following data,what setup cost will enable the desired production cycle? d = 400 per day (250 days per year) ,p = 4000 units per day,H = $40 per unit per year,and Q = 200 (demand for four hours,half a day) .

• A)$2.00
• B)$7.20
• C)$18.00
• D)$64.00
• E)$1,036.80

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Definitions:

Total Assets

The sum of all assets (current and non-current) owned by a business.

Retained Earnings

It represents the cumulative amount of net income earned by a company that is retained rather than distributed to its shareholders as dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, reflecting the ownership interest of shareholders.

Cash Dividend

A cash dividend is a payment made by a company out of its profits to shareholders, typically on a quarterly basis, in the form of cash.