A Company Needs 300 Items Per Year

A company needs 300 items per year. Production costs are $70 to prepare for a production run and $6 for each item produced. Inventory costs are $0.75 per item per year. Find the number of items that should be produced in each run so that the total costs of production and storage are minimized. ​​

A) 237 items
B) 287 items
C) 276 items
D) 265 items
E) 254 items

Correct Answer:

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