Bob's bumpers has a repetitive manufacturing facility in kentucky that makes automobile bumpers and other auto body parts. the facility operates 250 days per year and has annual demand of 60,000 bumpers. they can produce up to 320 bumpers each day. it costs $53 to set up the production line to produce bumpers. the cost of each bumper is $95 and annual holding costs are $25 per unit. setup labor cost is $23 per hour. a. based on the above information, what is the optimal size of the production run for bumpers? b. based on your answer to the a , and assuming the manufacturer holds no safety stock, what would be the average inventory for these bumpers? c. based on your answer two questions back (a & b), how many production runs would be required each year to satisfy demand? d. suppose the customer (an auto manufacturer) wants to purchase these bumpers in lots of 250 and that bob's bumpers is able to reduce setup costs to the point where 250 is now the optimal production run quantity. how much will they save in annual holding costs with this new lower production quantity? e. how much will they save in annual setup costs with this new lower production quantity?

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

Suppose that a firm is considering moving from a batch process to an assembly-line process to better meet evolving market needs. what concerns might the following functions have about this proposed process change: marketing, finance, human resources, accounting, and information systems?

The following information is available for ellen's fashions, inc. for the current month. book balance end of month $ 7 comma 000 outstanding checks 700 deposits in transit 4 comma 500 service charges 120 interest revenue 45 what is the adjusted book balance on the bank reconciliation?