Jackson Corp. common stock paid $2.50 in dividends last year (D0). Dividends are expected to grow at a 12-percent annual rate fo
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Answer:
30,000 units
Explanation:
According to the inventory cost model, the production run size that minimizes costs is given by:
Where D is the annual demand (1,500,000 items), S is the cost of each production run ($900) and H is the holding cost per unit ($3). Applying the given data:
Each production run should consist of 30,000 units.