Problem 801

 

A  publishing company sells 900,000 copies of certain books each year. It costs the company $1 to store each book for a year. Each time it must print additional copies, it costs the company $500 to set up the presses. How  many books should the company produce during each printing in order to minimize its total storage and setup costs?

 

Solution:-

 

The company should produce 30,000 books each printing in order to minimize costs.

 

 

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