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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.53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates 250 days per year and has annual demand of 63,000 bumpers. They can produce up to 360 bumpers each day. It costs $52 to set up the production line to produce bumpers. The cost of each bumper is $90 and annual holding costs are $39 per unit. Setup labor cost is $25 per hour.Suppose the customer (an auto manufacturer) wants to purchase in lots of 240 and that Bob's Bumpers is able to reduce setup costs to the point where 240 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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