Rose Arena is the production manager for a manufacturing firm that produces buggy whips and other items.The annual demand for a particular buggy whip is 1,600 units.The holding cost is $2 per unit per year.The cost of setting up the production line is $25.There are 200 working days per year.Rose decided to produce 200 units each time she started production of the buggy whips.If it took her 4 days to produce the 200 units, what was her production rate?
A)80 units/day
B)60 units/day
C)50 units/day
D)100 units/day

Question

Quizplus · Accepted Answer

To find the production rate, we need to divide the number of units produced by the time it takes to produce them:

Production rate = Units produced / Time

Since Rose produces 200 units every 4 days, we can calculate her production rate as:

Production rate = 200 units / 4 days = 50 units/day

This means that Rose can produce 50 units of buggy whips per day if she works continuously. Since the annual demand is 1,600 units, this production rate is sufficient to meet the demand in a reasonable time frame. Therefore, the best choice is C.

Rose Arena Is the Production Manager for a Manufacturing Firm