A book publisher wants to know how many times a year a print run should be scheduled. Suppose it costs ​$1100 to set up the printing​ process, and the subsequent cost per book is so low it can be ignored. Suppose further that the annual warehouse cost is ​$5 times the maximum number of books stored. Assuming 4500 copies of the book are needed per​ year, how many books should be printed in each print​ run? Note that since the warehouse cost is based on the maximum number of books held and not the​ average, the

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Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Set up printing process cost = $1,100

Annual warehouse cost = $5

Copies of the book needed per year = 4,500

No. of book publisher should print

[tex]=\sqrt{\frac{Set\ up\ printing\ process\ cost \times\ Copies\ of\ the\ book\ needed\ per\ year}{Annual\ warehouse\ cost}}[/tex]

[tex]=\sqrt{\frac{\$1,100\times4,500}{5} }[/tex]

[tex]= \sqrt{\frac{4,950,000}{5} }[/tex]

= 995 books in each print run

Required No. of print run

= Copies of the book needed per year ÷ No. of book publisher should print

= 4,500 ÷ 995

= 4.523

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