Acompany produces and sells 211,600 boxes of t-shirts each year. each production run has a fixed cost of $400 and an additional cost of $3 per box of t-shirts. to store a box for a full year costs $2. what is the optimal number of production runs the company should make each year? do not include units with your answer.

Step-by-step explanation:

Given

Company Produces and sells 211600 boxes of T-shirt each year

Fixed cost =$ 400

Additional cost = $ 3 per box

storage cost =$ 2

let x be the no of production run

therefore

Holding cost per year

yearly ordering cost

Total cost C(x)

differentiate C(x) w.r.t to x we get

Put to get max/min value

therefore 46 runs must be performed

b

step-by-step explanation: