The Divinity Corporation produces silver-plated crosses for its assembly of Rosaries. The firm operates 220 days a year and uses the crosses at a steady rate of 500 per day. Crosses can be produced at a rate of 4000 per day. Annual storage cost is $4 per cross, and the machine setup cost is $120 per run.

a) determine the economic run quantity

b) how many runs per year will there be?

c) what is the average inventory on hand?