Problem

BUSINESS: Production Runs A producer of audio tapes estimates the yearly demand f...

BUSINESS: Production Runs

A producer of audio tapes estimates the yearly demand for a tape to be 1,000,000. It costs $800 to set up the machinery for the tape, plus $10 for each tape produced. If it costs the company $1 to store a tape for a year, how many should be produced at a time and how many production runs will be needed to minimize costs?

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Solutions For Problems in Chapter 3.5