A vaccine marketed by a drug company has a known and constant demand of 1,200 units per year (or 100 units per month). The production cost is $720 per unit, the fixed setup cost is $2,400 per batch of production, and the holding cost per unit per year is $144. Lead-time for production is half a month. What is the optimal quantity per batch to produce? Choose the closest number if needed. 350 186 240 825 200

A vaccine marketed by a drug company has a known and constant demand of 1,200 units per year (or 100 units per month). The production cost is $720 per unit, the fixed setup cost is $2,400 per batch of production, and the holding cost per unit per year is $144. Lead-time for production is half a month. What is the optimal quantity per batch to produce? Choose the closest number if needed. 350 186 240 825 200

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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