Assignment:
Cameron Boats, a supplier of boating equipment, sells 5,000 WM-4 diesel engines every year. These engines are shipped to Cameron in a shipping container of 100 cubic feet, and Cameron Boats keeps the warehouse full of these WM-4 motors. The warehouse can hold 5,000 cubic feet of boating supplies. Cameron estimates that the ordering cost is $400 per order and that the carrying cost is $100 per motor per year. Cameron Boats is considering the possibility of expanding the warehouse for the WM-4 motors. How much should Cameron Boats expand, and how much would it be worth it for the company to make the expansion?