Answer:
77.5 units
Explanation:
Given that,
Lot size = 155 units
Raw material cost = $150
value added in manufacturing per unit = $300
Total cost per unit = $450
Lead time = 30 weeks
Annual demand = 4,200 units
Average cycle inventory = Lot size ÷ 2
= 155 ÷ 2
= 77.5 units
Value = Average cycle inventory × cost per unit
= 77.5 × $450
= $34,875