1. The production rate of final assembly is 800 compact discs per day. discs are assembled, they go directly to finished-goods inventory. Customer
demand averages 400 compact discs per day and about 50,000 compact
discs per year. If it costs $500 to set up the assembly line for the compact
discs and $1.00 per compact disc per year to carry them in inventory:
a. How many compact discs should be in a production lot at final assembly?
What is the TSC at the EOQ?