Question: An electronics store expects to sell 4 0 3 2 TVs at a steady rate next year. The manager of the store plans to order
An electronics store expects to sell TVs at a steady rate next year. The manager of the store plans to order these TVs from the manufacturer by placing several orders of the same size spaced equally throughout the year. The ordering cost for each delivery is $ for the setup costs and $ per TV The carrying costs, based on the average number of TVs in inventory, amount to $ per year for one TV
If Cx
is the inventory cost which is the sum of the ordering costs and the carrying costs and x
is the number of TVs in each order
Cx
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