Reference no: EM13586258

Question: A certain company makes a laboratory microscopes. Setting up each production run costs $2,500. Insurance costs, based on the average number of microscopes in the warehouse, mount to $20 per microscope per year. Storage costs, based on the maximum number of microscopes in the warehouse, amount to $15 per microscope per year. If the company expects to sell 1,600 microscopes at a fairly uniform rate throughout the year, determine the number of production runs that will minimize the company's overall expenses.