ACME Inc produces specialized instrument for specific use. The production rate is 502 units per day. Annual demand for the instrument is 79,981 units per year. The setup cost for the production run is $888, and the variable cost is $72.64 per unit. ACME Inc interest rate is 20.96% per year. Assume that there are 320 working days per year. What is the proportion of Uptime, T₁, in days for this specialized instrument?
ACME Inc produces specialized instrument for specific use. The production rate is 502 units per day. Annual demand for the instrument is 79,981 units per year. The setup cost for the production run is $888, and the variable cost is $72.64 per unit. ACME Inc interest rate is 20.96% per year. Assume that there are 320 working days per year. What is the proportion of Uptime, T₁, in days for this specialized instrument?
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Transcribed Image Text:ACME Inc produces specialized instrument for specific use.
The production rate is 502 units per day. Annual demand for
the instrument is 79,981 units per year. The setup cost for the
production run is $888, and the variable cost is $72.64 per
unit. ACME Inc interest rate is 20.96% per year. Assume that
there are 320 working days per year.
What is the proportion of Uptime, T₁, in days for this
specialized instrument?
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