Question: ( a ) If it costs $ 2 per unit to store an item for one year and $ 4 0 setup cost every time

(a) If it costs $2 per unit to store an item for one year and $40 setup cost every time vou produce a lot. and vou use 1000 units ver vear. how many lots of what size should be manufactured each vear? (b) How would vour answer change if the setup cost can De reduced to sT?

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