Scary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 1200 cases every two months from Scary Clowns. Scary Clowns incurs setup costs of $1800 every time it produces these cases, and its annual holding cost per case is $3.
a. How many units should Scary Clowns produce in each batch?
b. What is the total annual setup and holding cost for Scary Clowns using this policy?
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