38. Charles Cycles produces bicycles and tricycles. The setup cost when switching pro- duction…

38.   Charles Cycles produces bicycles and tricycles. The setup cost when switching pro- duction from one to the other is $1,000. On average, retail customers order 150 tri- cycles per day (consider a 250-day year). The daily production rate for tricycles is 600 units. Unit cost of a tricycle is $60 and the company has determined inventory carry- ing cost to be 15 percent. What should the production order quantity be?

 

"Get 15% discount on your first 3 orders with us"
Use the following coupon
FIRST15

Order Now