It appears to you that increasing the number of print runs reduces total costs for the year. Motivated by this idea, you decide to divide the
1,200,000 books into a twelve monthly production runs of 100,000 books each.
A) Create a graph similar to the one in Problem #1 of this exam. Use graph paper and include the graph for your work in this part (You can glue
the graph to your exam paper if necessary). Label both axes as in the graph above (you will have to modify the y-axis values for this part but
should use the same x-scale).
B) What are the setup costs for twelve (monthly) print runs?
C) What are the production costs?
D) What are the storage costs?
E) Fill in the amounts from your work above and compute the total costs for the year:
C = (Setup Costs) + (Production Costs) + (Storage Costs)
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