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Question
Bull Industries manufactures steel support brackets for use in car seats. The annual demand for these steel support brackets is 200,000 units. Bull Industries can produce 150 steel support brackets per hour and the company works an 8 hour day for 230 days each year.
The cost to set up for production of the steel support brackets is $190. Each steel support bracket costs $2.67. The company uses a rate of 18% of the item cost to determine the annual holding cost. Calculate the economic production quantity.
Answer options:
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