The Ordering and Transportation Cost C for Components Used in a Manufacturing

question 4

Multiple Choice

The ordering and transportation cost C for components used in a manufacturing process is approximated by ,where C is measured in thousands of dollars and x is the order size in hundreds.According to Rolle's Theorem,the rate of change of the cost must be 0 for some order size in the interval .Find this order size.Round your answer to three decimal places. ​

• A)8.196 components
• B)5.598 components
• C)6.674 components
• D)5.174 components
• E)4.098 components

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Definitions:

Investment Center

A business unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated based on its return on investments.

Revenues

The total income generated from normal business operations, before any expenses are deducted.

Profitability

Refers to a company's ability to generate earnings over its costs and expenses.

Controllable Margin

Controllable margin refers to the amount of profit or income that can be directly influenced by the management's decisions, usually excluding fixed costs and overhead.