Every year, Danielle Santos sells 53,856 cases of her Delicious Cookie Mix. It costs her $1 per year in electricity to store a case, plus she must pay annual warehouse fees of $4 per case for the maximum number of cases she will store. If it costs her $748 to set up a production run, plus $9 per case to manufacture a single case, how many production runs should she have each year to minimize her total costs? The number of production runs that Danielle should have is
Every year, Danielle Santos sells 53,856 cases of her Delicious Cookie Mix. It costs her $1 per year in electricity to store a case, plus she must pay annual warehouse fees of $4 per case for the maximum number of cases she will store. If it costs her $748 to set up a production run, plus $9 per case to manufacture a single case, how many production runs should she have each year to minimize her total costs? The number of production runs that Danielle should have is
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 3.4CE
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