Duluth Mаchinery Cоmpаny (DMC) is а famоus prоducer of mining tools. Currently DMC supplies its customers with 10,000 mining drills each year. This demand has been consistent in recent years. The setup cost for manufacturing mining drills is $40. If stored in warehouse of DMC, every mining drill costs $.60 per year. DMC can make 500 mining drills per day. The daily sales is about 50 mining drills each business day. What is the optimum production quantity?
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