Tile Depot, specializing in retail of construction materials, carries a popular flooring tile. The annual demand is estimated to be 5,000 cases. The ordering cost of this tile is $250 per order and the carrying cost is $10 per case per year. Tile Depot opens six days per week that is equivalent to 300 working days per year. The lead time for this item is usually two weeks or 12 working days.

The economic ordering quantity (EOQ) for this item is .

A. 250
B. 300
C. 400
D. 500
E. 600

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?