Foggy Optics, Inc. makes laboratory microscopes. Setting up each production run costs $2500.Insurance costs, based on the average number of microscopes in the warehouse, amount to $20 per microscope per year. Storage costs, based on the maximum number of microscopes in the warehouse, amount to $15 per microscope per year. Suppose that the company expects to sell 1600 microscopes at a fairly uniform rate throughout the year. Determine the number of production runs that will minimize the overall expenses for the company.
Foggy Optics, Inc. makes laboratory microscopes. Setting up each production run costs $2500.Insurance costs, based on the average number of microscopes in the warehouse, amount to $20 per microscope per year. Storage costs, based on the maximum number of microscopes in the warehouse, amount to $15 per microscope per year. Suppose that the company expects to sell 1600 microscopes at a fairly uniform rate throughout the year. Determine the number of production runs that will minimize the overall expenses for the company.
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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Foggy Optics, Inc. makes laboratory microscopes. Setting up each production run costs $2500.Insurance costs, based on the average number of microscopes in the warehouse, amount to $20 per microscope per year. Storage costs, based on the maximum number of microscopes in the warehouse, amount to $15 per microscope per year. Suppose that the company expects to sell 1600 microscopes at a fairly uniform rate throughout the year. Determine the number of production runs that will minimize the overall expenses for the company.
The Number of runs is?
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