1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
konstantin123 [22]
3 years ago
6

Neilsen Cookie Company sells its assorted butter cookies in containers that have a net content of 1 lb. The estimated demand for

the cookies is 700,000 1 lb containers. The setup cost for each production run is $546, and the manufacturing cost is $0.47 for each container of cookies. The cost of storing each container of cookies over the year is $0.35. Assuming uniformity of demand throughout the year and instantaneous production, how many containers of cookies should Neilsen produce per production run in order to minimize the production cost
Business
1 answer:
velikii [3]3 years ago
6 0

Answer:

46,734 units per run

Explanation:

total estimated demand = 700,000 containers

setup costs per production run = $546

manufacturing cost = $0.47 per container

holding cost = $0.35 per container

r = 700,000 / x

total setup costs = 546r = 546 (700,000/x) = 382,200,000/x

production costs = 0.47 x 700,000 = 329,000

storage cost per unit= 1/2r x 0.35 = 0.35/2(700,000/x) = 0.35x/1,400,000

total storage costs = 700,000 x 0.35x/1,400,000 = 0.175x

C(x) = 382,200,000/x + 0.175 x + 329,000

now we find the derivative:

C'(x) = -382,200,000/x² + 0.175

382,200,000/x² = 0.175

382,200,000 = 0.175x²

x² = 382,200,000 / 0.175 = 2,184,000,000

x = √2,184,000,000 = 46,733.28 ≈ 46,734 units per run

this answer is based on a continuous production process, there are 14.98 runs per year

You might be interested in
phân tích các yếu tố cấu tạo nên người cung cấp dịch vụ khách hàng công thứ A B C. trong các yếu tố đó yếu tố nào quan trọng nhấ
Lorico [155]

Answer:

I would appreciate if my answer is chosen as a brainliest answer the

3 0
2 years ago
Why did thousands of russians citizens march on st. petersburg in 1905?
Elina [12.6K]
<span>they marched to demand better working conditions,more personal freedoms, and greater representation in government.</span>
3 0
3 years ago
According to the presentation, the first step in making a major purchase is:
anzhelika [568]
D. Finding Out What The Taxes Will Be
3 0
3 years ago
Read 2 more answers
What is a product that is not an object or something that is owned called?
JulijaS [17]

Answer:A product that is not an object or something that is owned is called a non-economic good.

Explanation:

A product that is not an object or something that is owned is called a non-economic good.

5 0
3 years ago
Earl has $977 in his checking account. after he writes a check to the bookstore for $267, how much is remaining in his account?
earnstyle [38]
Earl has $310 dollars in his checking account 
8 0
2 years ago
Other questions:
  • Which of the following is a potential operating instrument for the central​ bank? A. The M1 money supply B. The monetary base C.
    11·1 answer
  • While at a garage sale, jenna purchased a set of used plastic baby bottles. she noticed the symbol "7" in a triangle on the bott
    12·1 answer
  • According to the humanistic perspective, what motivates individuals
    14·1 answer
  • 1)A checking account is sometimes also called a:
    9·1 answer
  • According to mcclelland, managers who are extremely concerned about establishing and maintaining good interpersonal relationship
    11·1 answer
  • Who is the First african american millionaire invented black hair care products?
    9·1 answer
  • If there are 10,000 people in your age bracket, and 10 of them died last year, an insurance
    11·1 answer
  • For the U.S. soft drink market, of the 300 million people in the U.S., 80% of the population is the maximum number of consuming
    6·1 answer
  • Sandy is a single taxpayer who collected Social Security benefits of $22,000. The Social Security benefits were her only income
    13·1 answer
  • The primary way investors in stock make money is through:.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!