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A company makes a component. It uses an average of 5000 of these throughout the year. The production rate
for these components is 500 per week and the cost of holding one item for the year is $1.50. The factory is open
for 50 weeks per year. The company has calculated the economic batch quantity as 2000 units.What is the production setup cost per batch?
The answer is $480. But I’m not sure on the working
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