question_answer

For economic manufacture, the total annual cost is given as \[12M\left( P+\frac{D}{Q} \right);\] where

1. M is number of parts made per month

2. P is processing cost per part.

Which one of the following is represented by D/Q in the above expression?

A) Setting up cost   

B) profit per part

C) Bonus              

D) setting up cost/part