A radio manufacturer uses 60000 knobs per year for its popular car stereo series. The firm makes its own knobs, which it can produce at a rate of 600 per day. The radios are assembled uniformly over the entire year. The unit cost of an item is $8 and the carrying rate per year is 15% of the item cost. The setup cost for the production of knobs is $60. The firm operates 300 days per year. Determine each of the following.
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