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

question 8

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) 9.657 components
• B) 6.828 components
• C) 8.000 components
• D) 6.000 components
• E) 4.828 components

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Definitions:

Learning

A change in behavior that results from experience.

Internal Process Improvement

The systematic approach to enhance and optimize an organization's internal procedures for better efficiency and effectiveness.

ROA (Return on Assets)

A financial ratio indicating how profitable a company is relative to its total assets, measuring efficiency in managing investments to generate earnings.

Net Income

The total earnings or profit of a company after all expenses and taxes have been deducted from total revenue.