# Mathematics - Calculus - Minimizing Cost

Not what you're looking for? Search our solutions OR ask your own Custom question.

An electronic firm uses 600 cases of transistors each year. Each case costs $1000. The cost of storing one case for a year is 90 cents and the ordering fee is $30 per shipment. How many cases should the firm order each time to keep total cost at minimum. (Assume that transistors are use at a constant rate throughout the year and that each shipment arrives just as the preceeding shipment is being used up.

Â© BrainMass Inc. brainmass.com December 15, 2022, 7:27 pm ad1c9bdddfhttps://brainmass.com/math/basic-calculus/mathematics-calculus-minimizing-cost-222283

#### Solution Preview

Let the firm order x cases each time.

Total cost = fixed cost + variable cost = [600 x 1000] + ...

#### Solution Summary

The expert uses calculus to determine minimizing costs. A complete, neat and step-by-step solution is provided.

$2.49