The setup cost to make carpet is $20 per setup.The holding cost is $2.00 per yard per year,and the annual demand is 12,000 yards.The manufacturing facility operates 300 days,and 120 yards of the carpet are produced per day.Given this information,which of the following statements is true?
A) The daily demand rate is 40.
B) The daily demand rate is 32.8.
C) The daily demand rate is 120.
D) The daily demand rate is 12,000.
Correct Answer:
Verified
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