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JL . 5 3 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates
JL Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates days per year and has annual demand of bumpers. They can produce up to bumpers each day. It costs $ to set up the production line to produce bumpers. The cost of each bumper is $ and annual holding costs are $ per unit. Setup labor cost is $ per hour.Suppose the customer an auto manufacturer wants to purchase in lots of and that Bob's Bumpers is able to reduce setup costs to the point where is now the optimal production run quantity. How much will they save in annual holding costs with this new lower production quantity? Display your answer to two decimal places.
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