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Universal Bikes is a manufacturing company that uses gear assemblies to produce four different models of mountain bikes. One of these gear assemblies, the Smooth

Universal Bikes is a manufacturing company that uses gear assemblies to produce four different models of mountain bikes. One of these gear assemblies, the "Smooth Shifter," is used for the two most expensive models, and has an estimated annual demand of 720 units. The Boilermakers estimates the cost to place an order is $150, and the holding cost for each assembly is $240 per year.

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