How many units should be in each production run

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Reference no: EM131793729

A company estimates that it will need 784,000 items during the coming year.

It costs $420 to manufacture each item, $2500 to prepare for each production run, and $5 per year for each item stored.

How many units should be in each production run so that the total costs of production and storage are minimized?

Reference no: EM131793729

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