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NEW QUESTION: 3
What is the number of production runs per year of computer chairs that would minimize the sum of carrying and setup costs for the coming year?
A. 0
B. 1
C. 2
D. 3
Answer: A
Explanation:
The EOQ minimizes the sum of carrying and setup costs. The EOQ is the amount at which carrying costs are equal to setup casts. Thus, plugging the data into the EOQ formula results in the following: C:\Documents and Settings\usernwz1\Desktop\1.PNG

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