A chemical plant produces sodium bisulfate in 100 kg bags. Demand for this product is 20 tonnes per day. The capacity for producing this product is 50 tonnes per day. Setup cost is $400, and storage and handling costs are $200 per tonne per year. The company operates 200 days a year. (Note: 1 tonne = 1,000 kg). a) What is the optimal number of bags per production run? b) What would the average inventory level be for this lot size? c) Determine the approximate length of a production run, in days. d) About how many production runs per year would there be? e) How much could the company save annually in inventory control cost if the setup cost could be reduced to $200 per production run and the optimal production quantity is recalculated and used?

Horace society is planning its annual western fair raceway gala. the gala committee has assembled the following expected costs for the event: dinner (per person) $10 gaming token and program (per person) $2 prize payouts $4,300 tickets and advertising $800 private box suite rental $1,700 lottery licenses $200 the committee members would like to charge $40 per person for the evening’s activities.required: 1. what is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. assume that last year only 200 persons attended the dinner-dance. if the same number attend this year, what price per ticket must be charged in order to break even? 3. refer to the original data ($40 ticket price per person). prepare a cvp graph for the dinner- dance from zero tickets up to 600 tickets sold.