23 Jul CALCULATE THE ECONOMIC MANUFACTURING QUANTITY.
The demand for 1000 units of a part to be used at a uniform rate throughout the year may be met by Show more The demand for 1000 units of a part to be used at a uniform rate throughout the year may be met by manufacturing. The part can be produced at the rate of 3 per hour in a department that works 1880 hours per year. The set-up cost per lot is estimated to be $40 and the manufacturing cost has been established at $5.20 per unit. Interest insurance taxes space and other holding costs are $3.10 per unit per year. Calculate the economic manufacturing quantity. Show less
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