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A company must produce 100,000 units of a new product over the course of a year. Starting a new production cycle cost $1,000. The product
A company must produce 100,000 units of a new product over the course of a year. Starting a new production cycle cost $1,000. The product cost $10 to make and retail for $30. It costs $5 to store a toy for a year. How many batches should the factory produce for the minimum total production cost?
1. 10
2. 5
3. 15
4. 12
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