A manufacturer has a steady annual demand for 11,520 cases of sugar. It costs $5 to store 1 case for 1 year, $32 in set up cost to produce each batch, and $15 to produce each case. Find the number of cases per batch that should be produced to minimize cost. The manufacturer should produce cases per batch. (Round to the nearest whole number as needed.)

A manufacturer has a steady annual demand for 11,520 cases of sugar. It costs $5 to store 1 case for 1 year, $32 in set up cost to produce each batch, and $15 to produce each case. Find the number of cases per batch that should be produced to minimize cost. The manufacturer should produce cases per batch. (Round to the nearest whole number as needed.)

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 20AA

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