A company is about to begin production of a new product. The manager of the department wants to know how often the machine used to produce the current item will be available for the production of the new product. The machine produces the current item at a rate of 190 units a day. 70 units will be used daily in assembling the final product. Assembly takes place five days a week, 50 weeks a year. The manager estimates that it will take almost a full day to get the machine ready for a production run, at a set-up cost of
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