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A company uses 36,000 tyres to produce car wheels every year. The company can make its own tyres simultaneously at a rate of 500 per day and the carrying cost is £2 per tyre per annum. If the company is open for 240 days of the year and each production run incurs a set-up cost of £40, what is:
Be sure to demonstrate your work and provide a brief interpretation. (200 words maximum)
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