What is the total annual cost of this operating

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Question: Healthy Plants Ltd. (HP) produces its premium plant food in 50-pound bags. Demand for the product is 10,000 pounds per week. HP operates fifty weeks per year and can produce 26,000 pounds per week. The setup cost is $190 and the annual holding cost rate is $0.62 per bag.

Currently, HP produces its premium plant food in batches of 1,200,000 pounds. If the maximum inventory level for HP according to its current operating policy is 738461.53 pounds, WHAT IS THE TOTAL ANNUAL COST OF THIS OPERATING POLICY, PLESE Round your answer to 2 decimal places, the tolerance is +/-0.01. Do not round your intermediate computations. The answer is not 1,534.92.

Reference no: EM132938289

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