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Question: A manufacturer of laptop computers operates a plant with an annual capacity of 6,630,000 laptop units. One of his models is expected to sell 390,000 units in the coming year. How large should each product lot be if it costs $575 to change production from one model to another. Assume that the manufacturer values each laptop at $280 dollars and it has a holding interest rate of 2%. You should round your answer up to the nearest laptop unit. Please show work using the economic order quality formula.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M93118198

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