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Unformatted text preview: 3.If Liberty Celebrations were to schedule 30 equal production runs of the flag display for the coming year, instead of 60 equal runs, the sum of carrying costs and set-up costs for the coming year would increase (decrease) by 100000/30 = 3333/2 = 1667 x 1.6 =$2666+ 30*50 = 1500 = $4166 for 30 flags per production run Difference will be = 4333-4166 = 167 decrease in total cost 4.The number of production runs per year of the flag displays that would minimize the sum of carrying costs and set-up costs for the coming year is (2*100000*50/1.6)^0.5 = 2500 flags per production run, it means there should be total 100000/2500 = 40 production run. 5.A safety stock of a 3-day supply of flag displays would increase Liberty Celebrations planned average inventory in units by 100000/250 x 3 = 1200 flags. </p><p>I will tip for this, I need an answer asap please</p>...
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- Winter '08
- Cost Accounting