Find total and unit cost before and after setup reduction

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Reference no: EM131235071

A company has an annual demand for a product of 1000 units, a carrying cost of $20 per unit per year, and a setup cost of $100. Through a program of setup reduction, the setup cost is reduced to $10. Run costs are $2 per unit. Calculate:

a. The EOQ before setup reduction.

b. The EOQ after setup reduction.

c. The total and unit cost before and after setup reduction.

Reference no: EM131235071

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