Computing total costs of production and storage


Assignment:

A company needs 250,000 items per year. Production costs are $650 to prepare for a production run and $5 for each item produced. Inventory costs are $0.90 per item per year. Find the number of items that should be produced in each run so that the total costs of production and storage are minimized. You must use calculus.

Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Cost Accounting: Computing total costs of production and storage
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