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Co . produces ice cream bars for vending machines and has a daily demand for 2 0 0 bars. The company has the capacity to

Co. produces ice cream bars for vending machines and has a daily demand for 200 bars. The company has the capacity to produce 180,000 bars per year. The cost of setting up the bar production is $7.50, and the firm is reluctant to produce too many at one time because of the storage cost(refrigeration) is relatively high at 30 percent of the actual bar price. Each ice cream bar is expected to sell at $5.00. The firm supplies vending machines with its "Fantasy Bars" 360 days a year

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