Inventory. ABC Auto sells 400 new automobiles a year. It costs $100 store one automobile for a year. To reorder automobiles there is a fixed cost of $60 and a cost per automobile of $50. How many automobiles must be ordered each time to minimize inventory costs?

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter2: Equations And Inequalities
Section2.2: Applied Problems
Problem 22E
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Inventory. ABC Auto sells 400 new automobiles a year. It costs $100 to store one
automobile for a year. To reorder automobiles there is a fixed cost of $60 and a cost per
automobile of $50. How many automobiles must be ordered each time to minimize
inventory costs?
Transcribed Image Text:Inventory. ABC Auto sells 400 new automobiles a year. It costs $100 to store one automobile for a year. To reorder automobiles there is a fixed cost of $60 and a cost per automobile of $50. How many automobiles must be ordered each time to minimize inventory costs?
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