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Randy and Rafi’s multimedia company anticipates that there will be a demand for 20,000 copies of...

Randy and Rafi’s multimedia company anticipates that there will be a demand for 20,000 copies of a certain DVD during the next year. It will cost the company $0.50 to store a DVD for one year. Each time it must make additional DVDs, it costs $200 to set up the production equipment. How many DVDs should the company make during each production run to minimize its total storage and setup cost? Assume that each production starts once the previous storage runs out and clearly justify that your answer is finding the minimum cost by showing the appropriate calculus work.

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