Question 15-(C) EXCITE Pte Ltd manufactures game consoles at 500 units a month. Demand is 250 units a month. Unit cost is $5, batch set-up cost is $1,000 and holding cost is $1.00 a unit a month. What is the optimal total cost at its optimal batch size? Choose the nearest answer. $3,250 a month $2,250 a month $1,750 a month 3000 a month $3.000 a month

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7MC: Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and...
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Question 15-(C)
EXCITE Pte Ltd manufactures game consoles at 500 units a month. Demand is 250 units a month. Unit cost is $5,
batch set-up cost is $1,000 and holding cost is $1.00 a unit a month. What is the optimal total cost at its optimal
batch size? Choose the nearest answer.
$3,250 a month
3000 a month
C
$2,250 a month
$1,750 a month
$3.000 a month
Transcribed Image Text:Question 15-(C) EXCITE Pte Ltd manufactures game consoles at 500 units a month. Demand is 250 units a month. Unit cost is $5, batch set-up cost is $1,000 and holding cost is $1.00 a unit a month. What is the optimal total cost at its optimal batch size? Choose the nearest answer. $3,250 a month 3000 a month C $2,250 a month $1,750 a month $3.000 a month
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