Solve the Problem. -Find the Optimum Number of Batches (To the Nearest Whole

Multiple Choice

Solve the problem.
-Find the optimum number of batches (to the nearest whole number) of an item that should be produced annually (in order to minimize cost) if 60,000 units are to be made, it costs $4 to store a unit for one year, and it
Costs $600 to set up the factory to produce each batch. Assume that units of this item will be sold off throughout
The year, so the cost equation will use the average cost.

A) 16 batches
B) 14 batches
C) 12 batches
D) 10 batches