Suppose that in the inventory problem, there is an annual cost, k₁, for storing a single unit, plus an annual cost per unit, k2, that must be paid for each unit up to the maximum number of units stored. The number of units that should be ordered or manufactured to minimize the total cost in this case is q = 2fM k1 + 2k2 Every year, Gianna sells 29,760 cases of her Famous Spaghetti Sauce. It costs her $1 per year in electricity to store a case, plus she must pay annual warehouse fees of $2 per case for the maximum . . . production runs each year Gianna should have to minimize her total costs.

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.

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?