Question: The owner has recently opened another store of the same size in New York City; however, the demand for coffee is increased to 4 ,
The owner has recently opened another store of the same size in New York City; however, the demand for coffee is increased to pounds annually, and the holding cost is $ per pound. Those numbers are much higher as is the cost of real estate in NYC The owner places orders of the same size as the first store because they are the same size stores. How much will the total cost be in the new coffeeshop?
Note: Do not round intermediate calculations. Round your answer to decimal places.
Can the owner save more by changing the order size in the second store?
multiple choice
Yes
No
What is the optimal order size for the NYC shop? How much is thenew quantity going to save the owner?
Note: Do not round intermediate calculations. Round your answer to decimal places.
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