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F 16.   A company must produce 100,000 units of a new product over the course of a year. Starting a new production cycle cost $1,000. The product cost $10 to make and retail for $30. It costs $5 to store a toy for a year. How many batches should the factory produce for the minimum total production cost? 1. 10 2. 5 3. 15 4. 12

F 16.   A company must produce 100,000 units of a new product over the course of a year. Starting a new production cycle cost $1,000. The product cost $10 to make and retail for $30. It costs $5 to store a toy for a year. How many batches should the factory produce for the minimum total production cost? 1. 10 2. 5 3. 15 4. 12

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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F 16.

 

A company must produce 100,000 units of a new product over the course of a year. Starting a new production cycle cost $1,000. The product cost $10 to make and retail for $30. It costs $5 to store a toy for a year. How many batches should the factory produce for the minimum total production cost?

1. 10

2. 5

3. 15

4. 12

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