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What manufacturing batch quantity should Starfiled use

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Reference no: EM132719812

Question - Starfield Inc. manufactures planetary rings on a DarkEnergy machine at the rate of 600 rings per day. The rings are consumed by Starfield at the rate of 200/day. Each rings costs $25 and the DarkEnergy machine costs $100 to set up each time it has to be run to produce the rings. Starfield has interest costs of 10% per year. What manufacturing batch quantity should Starfiled use to produce the rings?

a. 2416

b. 2960

c. 4186

d. 5126

Reference no: EM132719812

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