Question

A company needs 450,000 items per year. Production costs are $500 to prepare for a production run and $10 for each item produced. Inventory costs are $2 per item per year. Find the number of items (x) that should be produced in each run so that the total costs of production and storage are minimized.

Answer 1

450000=500+20x

Answer 2

I think this is the answer, it's been so long since I did one of these problems. check to see if it makes sense.

Answer 3

so then 450000-500=20x
and 449500=20x
x=22475

Answer 4

Thank you!