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11-7. (a) If it costs $2 per unit to store an item for one year and $40 setup cost every time you pro- duce a

11-7. (a) If it costs $2 per unit to store an item for one year and $40 setup cost every time you pro- duce a lot, and you use 1000 units per year, how many lots of what size should be manufactured each year. b) How would your answer change if the setup cost can be reduced to $10

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