Question

Sheet A computer store sells 7,200 boxes of storage drives annually. It costs the store $0.20 to store a box of drives for one year. Each time it reorders drives, the store must pay a $5.00 service charge for processing the order. 7200 boxes of storage drives are sold every year 0.2 is the cost of storing one box 5 is the cost of ordering boxes X is the number of boxes ordered is the number of orders per year How can you express the boxes of storage drives sold every year in terms of x and y? 7200 The average number of boxes stored every year is x/2. What is the cost function in terms of x and y? In terms of x? Cix.y = C(x) = What is the marginal cost function? Cix) What is the minimum cost? How many orders should the store make every year? Use formulas where you can. X Minimum cost Number of orders:

Answer 1

ANSWER! - Given that, Boxes of storage drives ave sold every year N = 7200 The cost of storing one box Cs = $0.2 The cost of ordering boxes Co $5 x. The number of bones ordered Y. The number of order per year ra) Extivess the boxes a štovage drives sold every year in terms of x and y The boxes of storage drives sold every year in terms of xey can be expressed as, (No. of bones ordered )x(No. of oder per year) 7200 - ay There are This gives y: 7200 la (b) The cost function in terms of XEY? in terms of x! It the average number of bones stored every year is 2/2 Then the cost function in terms of xey is, C(x, y ) Co XCY)+Cs X (X12) 5Y+0.2x72 7200 0 ccx,y) · 5y +0.1% Therefore,

C (X,Y) - 5y +0.1% Here, putting the value of y ofrom ego, C(X) = 5(7200 (x) - 0.1% CCX), 36000 x +0.1X C) The marginal cost function Marginal cost function is the derivative of cost function teve, Marginal cost ccx). dax 36000 to.12 (* :) x -36000/07 +0.1(!) - - 36000/get to - 0.1- 36000/24 Therefore, The marginal cost cex) - 0.1 - 36000 /AL (d) The minimum cost The minimum cost devivative el cost function must beo Then, 0-1 - 36000 x² 0.1 36000 x²

71 - 36000 0 1 nh. s 360.000 This implies X - 600 Therefore, for minimum cost, x=600 . Number of boxes ovde ve d at a time Minimum cost is Cusing equation a +0.1 (600) C(600)- 36000/600 C (600), 60+60 c C600) - $ 120 Number of orders per year orders per year Casing equation Y = 7200 / = 7200 1600 12 У