What is the economic production quantity

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C&A produces dog food in 25-pound bags. Monthly demand for C&A s dog food is 500 pounds. C&A has capacity to produce 700 25-pound bags per year. The setup cost to produce the dog food is $20. The holding cost is $5 per 25-pound bag per year. What is the economic production quantity?

44 bags

52 bags

54 bags

63 bags

75 bags

Reference no: EM13820891

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