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Consider a manufacturer that produces a circuit board at a relatively stable rate of 3 , 0 0 0 units per year to satisfy a

Consider a manufacturer that produces a circuit board at a relatively stable rate of 3,000 units per year to satisfy a relatively stable rate of 2,400 units per year. The manufacturing setup cost is $1,000 per order. The unit cost of the circuit board is $235. The manufacturing facility uses an annual inventory carrying rate of 18 percent.
What is the optimal production quantity for this item?

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