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What is the utilization of the production facility

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Ladono Corporation is a supplier of control systems to major avionics companies. Demand for control systems is about 2000 units per year. The Ladono plant in Minneapolis can produce at a rate of 200 units per month. Each unit costs Ladono $100 to produce and the setup cost for beginning a production run is $1000. Assume the company uses an annual rate of return on investments of 25%. What is the optimal number of units to produce in each run? What is total cost? What is the utilization of the production facility? What is the maximum dollar investment in finished goods inventory that Ladono has at any time?

Reference no: EM131648054

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