How many chocolates should the company produce in each batch

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Reference no: EM132126793

Henny's Chocolates is well known for producing only one type of handmade chocolate and the unit price is $40. The annual demand is 5,000 chocolates on average and the expected inventory holding cost is 10% of the cost of each chocolate. On average, Henny's Chocolates can produce 1,000 chocolates per month. Because of difficulties in preparing kitchen tools, chocolates are produced in batch. The cost to set up the production process is $500. The unit production cost is $10. How many chocolates should the company produce in each batch?

Reference no: EM132126793

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