Problem

Business The theory of economic lot size shows that, under certain conditions, the number...

BusinessThe theory of economic lot size shows that, under certain conditions, the number of units to order to minimize total cost is

where k is the cost to store one unit for one year, f is the (constant) setup cost to manufacture the product, and M is the total number of units produced annually. Find x for the following values of f, k, and M.

(a) k = $1, f = $500, M = 100,000


(b) k = $3, f = $7, M = 16,700


(c) k = $1, f = $5, M = 16,800

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