What is the optimal number of housings for hal to produce

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HAL Ltd., discussed in Problem 9, can produce the disk drive housings in the Hamilton, Ontario, plant at a rate of 150 housings per month. The housings cost HAL $85 each to produce, and the setup cost for beginning a production run is $700. Assume an annual interest rate of 28 percent for determining the holding cost. What is the optimal number of housings for HAL to produce in each production run?

Reference no: EM131305732

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