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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