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A cake factory can produce cakes at the rate of 500 per day. The factory supplies its cakes to the local grocery stores at a
A cake factory can produce cakes at the rate of 500 per day. The factory supplies its cakes to the local grocery stores at a rate of 250 per day. The cost to prepare the equipment for producing the cakes is $20. Annual holding costs are $2 per cake. Assume that the factory operates 250 days a year. What are the total annual setup and holding costs.
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