A restaurant has a steady annual demand for 885 bottles of California wine. It costs $3 to store 1 bottle for 1 year, and it costs $7 to place a reorder. Find the optimum number of bottles per order. The optimum number of bottles per order is. (Type a whole number.)

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter12: More Realistic And Complex Pricing
Section: Chapter Questions
Problem 12.1IP
icon
Related questions
Question
A restaurant has a steady annual demand for 885 bottles of California wine. It costs $3 to store 1 bottle for 1 year, and it costs $7 to place a
reorder. Find the optimum number of bottles per order.
The optimum number of bottles per order is. (Type a whole number.)
Transcribed Image Text:A restaurant has a steady annual demand for 885 bottles of California wine. It costs $3 to store 1 bottle for 1 year, and it costs $7 to place a reorder. Find the optimum number of bottles per order. The optimum number of bottles per order is. (Type a whole number.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Value Added Method
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning