The McCarthy Corp. uses the following information in order to determine the optimum size of a production run: mki96

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Fixed cost of producing.. Labor cost of rearranging. Adjusting machines Variable cost of producing $14.80 $2.50 per production run $1.05 per production run $6.00 per unit Cost of carrying one unit in inventory. $2.25 Management usually produces 1.000 units a run and has 70 runs a year. Labor costs of rearranging and adjusting the machine are considered set-up costs. Required: Find the optimum size of the production run in units.