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 you vou produce a lot. and you use 1000 units per year. how many lots of what size should be manufactured each year? (b) How would vour answer change if the setup cost can be reduced to s10?

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