2 A company can produce 100 home computers per day. The setup cost for a production run...

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2 A company can produce 100 home computers per day.

The setup cost for a production run is $1,000. The cost of holding a computer in inventory for one year is $300.

Customers demand 2,000 home computers per month

(assume that 1 month  30 days and 360 days  1 year).

What is the optimal production run size? How many production runs must be made each year?

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