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Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 11,800 flashing lights per year and has the capability of producing 95 per day. Setting up the light production costs $52. The cost of each light is $0.95. The holding cost is $0.10 per light per year.

Operation Management, Management Studies

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