Problem

A toy manufacturer estimates the demand for a doll to be 10,000 per year. Each doll cost...

A toy manufacturer estimates the demand for a doll to be 10,000 per year. Each doll costs $5 to manufacture, plus setup costs of $800 for each production run. If it costs $4 to store a doll for a year, how many should be manufactured at a time and how many production runs should there be to minimize costs?

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Solutions For Problems in Chapter 3.5