Suppose that in the inventory problem, there is anannual cost, k₁, for storing a single unit, plus anannual cost per unit, k2, that must be paid for eachunit up to the maximum number of units stored. Thenumber of units that should be ordered ormanufactured to minimize the total cost in this caseis q =2fMk1 + 2k2Every year, Gianna sells 29,760 cases of herFamous Spaghetti Sauce. It costs her $1 per year inelectricity to store a case, plus she must pay annualwarehouse fees of $2 per case for the maximum. . .production runs each yearGianna should haveto minimize her total costs.

Given:q=k1+2k22fM Where:f is the fixed cost per order or production run.M is the annual…

Answered: Suppose that in the inventory problem,…

Calculus: Early Transcendentals

8th Edition

ISBN:9781285741550

Author:James Stewart

Publisher:James Stewart

Chapter1: Functions And Models

Section: Chapter Questions

Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...

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A book publisher has fixed costs of $360,000 and variable costs per book of $9.00. The book sells $23.00 per copy. How many books must be sold to break even? If the fixed cost increased, would the new break even point he higher or lower? If the variable cost per unit decreased, would the new break even point he higher or lower?
A company uses 5000 items per annum which has a price of $2 each. The ordering costs are $150 per order and holding costs are $1.50 per item per annum. The company is offered a 5% discount (discounted price is $1.90) for orders of 5000 and over. Order cost and holding cost remain at $150 per order and $1.50 respectively. Assuming that the company orders 5000 items per order, calculate the number of orders per annum, average stock, annual stock holding cost, annual order cost, annual inventory cost and the total annual cost of items and inventory.
A certain company is producing and selling its product X. The variable cost of the product X is 60% of its selling price, and the fixed cost of the company is $50,000 per month. When the company’s target profit for the forthcoming month is $20,000, how much sales volume (in dollars) is required to meet it?
Question 4 Maggie works at a very popular freshly squeezed lemonade stand on a beach that sells regular lemonade and strawberry lemonade. To make a glass of regular lemonade it takes 4 whole lemons. To make a glass of strawberry lemonade it takes 3 whole lemons and 2 average sized strawberries. The owners figured they have a budget so that each morning a truck delivers 900 lemons to the stand and 408 strawberries to the stand. On each glass of regular lemonade, a profit of R1,95 is made. The stand is able to charge more for strawberry lemonades and a profit of R2,10 is made on each glass of that. The owners want Maggie to sell at least twice the amount of strawberry lemonade each day as regular lemonade because more profit is made on the strawberry lemonade. They have also asked that at least 50 strawberry lemonades get sold each day because the strawberries spoil more quickly than the lemons. How many regular lemonades and how many strawberry lemonades should Maggie sell each day to…
Three priceing options are available: Silver plan: $20/month for up to 200 Mb's of service plus $0.16 for each additional Mb of service. Gold plan: $50/month for up to 1000 Mb's of service plus $ 0.08 for each additional Mb of service. Platinum plan: $100/month for up to 3000 Mb's of service plus $0.04 for each additional Mb of service. If C is the monthly charge for x Mb's of service, express C as a function of x for each plan. For how many Mb's of service is the Silver Plan the bes pricing option?
A peanut company sells a mixture of two types of beans. The cheapest mixture contains 80% lean peanuts and 20% pithy beans, while the most expensive bean contains 50% of each type. Every week the company can earn 1,800 kg of lean peanuts and 1,200 pithy peanuts. How many kg of each mixture must be made to maximize profit if the profit is Rp. 100 for each cheap mixture and Rp. 150 from the expensive mixture?a. Formulate the problem?b. Finish with a graphic method?
4. The Metropolitan Company sells its latest product at a unit price of $2. Variable costs are estimated to be 40% of the total revenue, while fixed costs amount to $6,000 per month. How many units should the company sell per month to break even?

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