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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
النسخة 1الرقم المعياري الدولي: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
النسخة 1الرقم المعياري الدولي: 978-0538736787 تمرين 2
EOQ WITH SETUP COSTS
Cushing Manufacturing produces casings for sewing machines: large and small. To produce the different casings, equipment must be set up. The setup cost per production run is $9,000 for either casing. The cost of carrying small casings in inventory is $3 per casing per year; the cost of large casings is $9 per unit per year. To satisfy demand, the company produces 600,000 small casings and 200,000 large casings.
Required:
1. Compute the number of small casings that should be produced per setup to minimize total setup and carrying costs.
2. Compute the setup, carrying, and total costs associated with the economic order quantity for the small casings.
Cushing Manufacturing produces casings for sewing machines: large and small. To produce the different casings, equipment must be set up. The setup cost per production run is $9,000 for either casing. The cost of carrying small casings in inventory is $3 per casing per year; the cost of large casings is $9 per unit per year. To satisfy demand, the company produces 600,000 small casings and 200,000 large casings.
Required:
1. Compute the number of small casings that should be produced per setup to minimize total setup and carrying costs.
2. Compute the setup, carrying, and total costs associated with the economic order quantity for the small casings.
التوضيح
موثّق
موثّق
We are given the following costs of casi...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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