The cost to set up the production process is 100 and it, Project Management

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The cost to set up the production process is 100 and it

Jan Kottas is the owner of a small company that produces electric knives used to cut fabric. The annual demand is for 8,000 knives, and Jan produces the knives in batches.

On average, Jan can produce 150 knives per day; during the production process, demand has been about 40 knives per day.

The cost to set up the production process is $100, and it costs Jan $.80 to carry a knife for 1 year. How many knives should Jan produce in each batch?

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