How large each product lot be if costs change production


Problem

A manufacturer of laptop computers operates a plant with an annual capacity of 6,630,000 laptop units. One of its 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 unit at $280 dollars and it has a holding interest rate of 2%. you should round your answer up to the nearest laptop unit.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How large each product lot be if costs change production
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