Robber Co manufactures control panels for burglar alarms, a very profitable product. Every product comes with a one-year warranty offering free repairs if any faults arise in this period.
my question - While calculating Machine set-up cost they have done 500/400 instead it should be 400/500 ..
please correct if I am wrong.
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The answer is correct.
Changing to a smaller batch size means that they will have to produce more batches to produce the same total quantity.
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