Question: PLEASE SHOW ALL STEPS AND WORK FOR EACH ANSWER! PLEASE ALSO NOTE THAT THIS IS ONE QUESTION WITH 4 DIFFERENT PARTS. DO NOT ANSWER THE
PLEASE SHOW ALL STEPS AND WORK FOR EACH ANSWER! PLEASE ALSO NOTE THAT THIS IS ONE QUESTION WITH 4 DIFFERENT PARTS. DO NOT ANSWER THE QUESTION IF YOU DO NOT KNOW HOW TO DO THE WORK OR EXPLAIN ALL OF THEM! THANK YOU!
Sal's Soft Drink Super Store has steady annual demand for 128,000 cases of their house blend soda. It costs Sal $2 to produce each case of soda and $10 to prepare for each production run. In addition, it costs $1 to store 1 case of soda for 1 year. (a) Calculate Sal's total production and storage costs for the year if he produces all 128,000 cases at once. (b) Calculate Sal's total production and storage costs for the year if he produces 12, 800 cases at a time as needed. (c) How many cases of soda should Sal produce in each production run to minimize his total production and storage costs for the year? (d) How many production runs will Sal do in a single year to achieve this minimum cost
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