Some components but makes heating element

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Reference no: EM132249417

A company makes hair dryers. It buys some components but makes the heating element which it can produce at the rate of 875 per day. Dryers are assembled every day, 250 days per year, at the rate of 370 per day. Because of the disparity between the production and usage rates, the heating elements are periodically produced in batches of 1600 units. Assuming the setup cost per element is $4.0, the holding cost per element is $1.0, and batch sizes are as given, what is the total cost to produce these elements? (Round to the nearest dollar).

Reference no: EM132249417

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