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Calculate the economic run size for hosuing

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Reference no: EM131728595

Electric Sheep produces the housing for its 1/20 HP wrist motor internally. Annual demand for this wrist motor, including replacement parts, is 70000. The setup cost for this motor housing is $120 and these wrist motor housing can be produced at a rate of 1000 per dkay. The annual holding cost for these motors is $1. Calculate the economic run size for this hosuing. Elctric Sheep operates 250 days per year.

Reference no: EM131728595

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