The Johnson Company manufactures expensive medical diagnostic equipment. It plans to meet all of its projected demand
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The Johnson Company manufactures expensive medical diagnostic equipment. It plans to meet all of its projected demand (given below for the next year by quarter). The firm plans to use a constant production rate of 300 units / quarter. Production costs are $20,000 per unit and holding costs are $2,000 per quarter per unit.
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What is the cost of this production plan?
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